U.S. Treasury yields climbed on Thursday after Federal Reserve Chairman Ben Bernanke stated that the central bank’s second round of quantitative easing, known as QE2, is set to end in June as planned. Bernanke’s comments have led investors to reassess their expectations regarding the Fed’s future monetary policy.

Market Reaction

The yield on the benchmark 10-year Treasury note rose to 3.59%, while the 30-year bond yield increased to 4.68%. Shorter-term yields also saw gains, with the 2-year note yield edging up to 0.70%.

Implications of QE2’s End

The conclusion of QE2 raises questions about the pace of economic recovery and the potential for future Fed intervention. Some analysts believe that the end of asset purchases could lead to higher borrowing costs and potentially slow economic growth.

Economic Outlook

The Fed’s assessment of the economic outlook will be crucial in determining its next steps. Investors will be closely monitoring upcoming economic data releases for indications of inflation and employment trends.

Expert Commentary

“The market is now trying to gauge the Fed’s intentions beyond June,” said a senior market strategist at a leading investment bank. “The focus is shifting to the possibility of interest rate hikes in the medium term.”