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.
