U.S. government debt prices ticked lower Friday morning with investors looking ahead to speeches from Federal Reserve members and monitoring a sell-off in international bond markets.
The yield on the benchmark 10-year Treasury note was higher at around 3.179 percent at 4:10 a.m. ET, while the yield on the 30-year Treasury bond was higher at 3.364 percent. Bond yields move inversely to prices.
In Italy, 10-year and 30-year bond yields hit their highest levels since early 2014, according to Reuters, just hours after the European Union warned of rule breaches in Italy’s draft budget. Investors have shown concerns over Italy’s 2019 budget, which was officially sent to the EU this week for analysis. The anti-establishment and partly right-wing government in Italy plans to increase public spending in the country, sticking with campaign pledges before the general election in March this year.
A number of Fed members are expected to speak Friday. At 12 p.m. ET, Atlanta Fed Reserve President Raphael Bostic will participate in an armchair discussion on the economic outlook in Macon, GA. At 12:45 p.m. ET, Dallas Fed Reserve President Robert Kaplan is set to participate in a moderated Q&A session at the Shadow Open Market Committee at the Princeton Club in New York.
Meanwhile, investors will keep a close eye on a number of corporate earnings Friday. Procter & Gamble, Citizens Fincl., State Street and Synchrony are expected to report before the bell. On the data front, existing home sales numbers are due at 10 a.m. ET.
No auctions are scheduled for Friday.