U.S. Treasury yields climbed on Friday as the latest economic data pointed to a robust economy. The yield on the benchmark 10-year Treasury note rose to 2.97%, while the 2-year Treasury yield increased to 2.60%.

The gains in yields reflect growing optimism about the U.S. economy’s trajectory. Recent reports on job growth and manufacturing activity have exceeded expectations, bolstering confidence among investors.

Market participants are closely watching the Federal Reserve for signals about future interest rate hikes. Strong economic data could prompt the Fed to accelerate its tightening cycle, putting upward pressure on Treasury yields.

Here are some factors influencing Treasury yields:

• Economic Growth: Strong economic data typically leads to higher yields.
• Inflation Expectations: Rising inflation expectations can also push yields higher.
• Federal Reserve Policy: The Fed’s monetary policy decisions have a significant impact on Treasury yields.

Analysts suggest that Treasury yields could continue to rise in the coming months if the economy maintains its current momentum.