The US Treasuries complex slumped on Friday as campaigning over whether Britain should remain in the European Union was suspended for a second day after the killing of a U.K. politician Jo Cox, reducing demand for the safest fixed-income assets.
The yield on the benchmark 10-year Treasury note rose more than 4 basis points to 1.606 percent and the yield on short-term 2-year Treasury note also jumped 1-1/2 basis point to 0.697 percent by 12:00 GMT.
A British member of parliament, Jo Cox, was shot dead on Thursday, resulting in the suspension of campaigning for next week's referendum on the country's EU membership. Cox was one of the members of parliament advocating continued British membership.
Fed's Bullard said that under current conditions, the U.S may need no more than 1 rate hike over the next 30 months or more.
On Wednesday, the Federal Open Market Committee left fed funds rate unchanged in a 0.25-0.50 percent range, as expected. One key highlight of the statement was the note that the pace of improvement in the labour market has slowed while growth in economic activity appears to have picked up, adding that although the unemployment rate has declined, job gains have diminished.
Also, FOMC diminished outlook for growth coupled with largely downgraded forecasts for the overnight rate, though median expectations remain unchanged for 50 basis points worth of tightening in 2016.
The June statement reiterated that inflation has continued to run below the Committee's 2 percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports. Additionally, the June statement repeated that inflation is expected to remain low in the near term, in part because of earlier declines in energy prices, but to rise to 2 percent over the medium term as the transitory effects of past declines in energy and import prices dissipate and the labour market strengthens further. In terms of risks, the Committee continues to closely monitor inflation indicators and global economic and financial developments.
Meanwhile, the International benchmark Brent futures rose 2.52 percent to $48.38, the West Texas Intermediate (WTI) climbed 1.77 percent to $47.03 and the S&P 500 Futures down 3 points to 2,068 by 12:00 GMT.
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