Treasury yields in focus as investors await economic data

US Treasury yields were slightly lower on Friday as market participants awaited a new batch of economic data.

The yield on the benchmark 10-year Treasury note fell less than 1 basis point to 2.8857%. The yield on the 30-year government bond also ticked below 1 basis point lower to 3.1554%. Yields move inversely to prices and one basis point equals 0.01%.

The shorter 2-year Treasury yield fell 1 basis point to 3.215% after falling in the previous session after another economic report showed a slowdown in inflation.

The moves helped facilitate inversions along the yield curve, which are seen as recession signals by Wall Street.

The producer price index, which measures the prices received for demand products, fell 0.5% from June, the first month-on-month decline since April 2020, the month after Covid-19 was declared a pandemic. Economists surveyed by Dow Jones had expected an increase of 0.2 percent.

The PPI marked another report this week that pointed to easing price pressures. Data on Wednesday showed that US consumer prices rose 8.5% year over year in July, slowing from the previous month, mainly due to a drop in oil prices. Economists had expected an annual increase of 8.7%.

The data reflected an easing of inflation and prompted investors to question the prospect of the Federal Reserve slowing the pace of rate hikes as early as September.

Market participants on Thursday will again await the release of economic data for further clues about the health of the US economy.

Import prices for July will be released around 8:30 a.m. ET, with a preliminary reading of consumer sentiment for August expected to follow at 10:00 a.m. ET.

— CNBC’s Jesse Pound contributed to this report.

Leave a Reply

Your email address will not be published.