U.S. Treasury yields rose modestly on Friday after the release of positive economic data. The yield on the benchmark 10-year Treasury note climbed to 2.05%, while the 30-year bond yield edged up to 3.22%.

The increase in yields followed the release of data indicating improvements in the manufacturing sector and consumer sentiment. These reports suggest a strengthening economic recovery, which can lead to higher inflation expectations and, consequently, higher bond yields.

Investors are closely monitoring economic data for signals about the Federal Reserve’s future monetary policy decisions. Stronger economic data could prompt the Fed to consider tapering its asset purchase program or raising interest rates sooner than previously anticipated.

Here are some key factors influencing Treasury yields:

• Economic Data: Strong economic reports tend to push yields higher.
• Inflation Expectations: Rising inflation expectations also contribute to higher yields.
• Federal Reserve Policy: The Fed’s monetary policy decisions have a significant impact on Treasury yields.
• Global Events: Geopolitical events and global economic conditions can also influence the bond market.

Analysts suggest that Treasury yields are likely to remain volatile in the near term as investors continue to assess the economic outlook and the Fed’s policy stance.