Treasury yields were steady Friday morning, one day after benign U.S. inflation data sent short-term yields down by the most in six months.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 4.53%, up 0.2 basis points. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.22%, up 0.7 basis points. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.43%, up 0.7 basis points.
According to Dow Jones Market Data, Thursday’s decline of 12.7 basis points in the 2-year was the most since Jan. 31.
What’s driving markets
Investors were waiting for data on June producer prices as well as July consumer sentiment, following data showing a surprise 0.1% dip in consumer prices in June.
“Despite the headline figure failing to breach the 3% level, the first negative month-on-month change since June 2020 and lower shelter CPI print allowed the market to believe that the Fed is closer than ever to a September rate cut, partly ignoring the fact that there will be another two inflation reports before the September gathering,” said Achilleas Georgolopoulos, investment analyst at XM.
This post was originally published on Market Watch
