Bond yields eased Friday ahead of data that could show an inflation gauge favored by the Federal Reserve declining to its lowest rate in two years.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 5.04%, down 2.5 basis points. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.54%, down 3.5 basis points. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.68%, down 2.6 basis points.
What’s driving markets
The Commerce Department will report personal income data for August at 8:30 a.m. Eastern, a data release that also includes the PCE price index, the inflation gauge favored by the U.S. central bank.
The core PCE price index is forecast to rose 0.2% on a monthly basis, or 3.9% year-over-year, the latter which would be the lowest since Sept. 2021.
“Today’s U.S. inflation and personal spending numbers could go some way to tempering expectations about a November rate hike from the Federal Reserve,” said Michael Hewson, chief market analyst at CMC Markets.
Besides the inflation data, there’s also the Chicago PMI and University of Michigan consumer sentiment index due for release.
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