Treasury: yields down, 10-year down 6 basis points

U.S. Treasury yields fell as investors considered what the latest developments in the banking sector and the Federal Reserve's expectations for interest rates could mean for the economy. This morning, the yield on the 10-year Treasury was down nearly six basis points at 3.3446 percent. The 2-year Treasury yield stood at 3.7226 percent after falling more than eight basis points.

Investors digested a week of central bank interest rate policy decisions and economic data reports, while uncertainty about the future of the banking sector remained. Regional and international financial institutions experienced tumultuous weeks, with the fallout from the takeover of Credit Suisse by rival bank UBS still unfolding. Swiss authorities have suggested that the collapse of Silicon Valley Bank in the United States played a key role in Credit Suisse's downfall, shaking investor confidence in the banking sector.

Fed's latest policy meeting

After the Fed's latest policy meeting, Chairman Jerome Powell emphasized that the banking crisis played a role in the central bank's decisions and announced a 25 basis point increase in interest rates. Many investors have long hoped for a pause in rate hikes, as there are fears that the Fed, by raising interest rates and keeping them high for longer, could drag the U.S. economy into a recession. Further indications of the Fed's policy plans are expected today when St. Louis Fed President James Bullard is scheduled to speak. Also today, the latest report on durable goods orders is expected.