Treasury yields rose Friday as investors awaited key inflation figures and assessed the outlook for the US economy after Thursday’s better-than-expected gross domestic product (GDP) report.
benchmark yield 10 year government bond increased by more than 5 basis points to 3.546%.of 2 year government bond The yield last traded at 4.216% after up about 4 basis points.
Yields and prices are inversely related, with 1 basis point equaling 0.01%.
Investors have been eagerly awaiting the release of Friday’s Personal Consumption Expenditure Price Index report. This is he one of the Federal Reserve’s favorite inflation indicators. It reflects the amount consumers spend on goods and services.
This data could influence the Fed’s next rate decision expected at the close of its next meeting on February 1st. Many investors hope the central bank will slow its pace of rate hikes further and announce a 25 basis point hike. after that.
Concerns have spread in recent months that the pace of rate hikes so far is pushing the U.S. economy into recession.
Investors also digested Thursday’s economic data. GDP readings for the last quarter of 2022This showed the US economy expanded by 2.9%, slightly above the 2.8% forecast of economists previously surveyed by Dow Jones.
Earnings season continues to puzzle investors, with many looking to companies’ guidance on how they expect the economy to develop.