Treasury yields were slightly higher on Friday, a day falling for most the past week helped by signs of slowing U.S. inflation.
What happened
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
4.644%
rose 2.1 basis points to 4.670%. The yield on Thursday tumbled 12.9 basis points to 4.611%, its lowest levels since June 12, according to Dow Jones Market Data. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
3.778%
rose 1.4 basis points to 3.784% after dropping to 3.759% on Thursday, its lowest level since June 28. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
3.903%
was steady at 3.904% from 3.895% late Thursday.
What’s driving markets
Treasury yields were firmer on Friday, after falling for most the week, as data showed more signs of easing inflation in the U.S. economy, with both producer and consumer prices coming in better than expected this week.
However, markets were still pricing in a 94.9% probability that the Fed will raise its policy interest rate by another 25 basis points to a range of 5.25%-5.5% on July 26, according to the CME FedWatch tool.
Federal Reserve Board Gov. Christopher Waller said late Thursday he was not swayed by June’s benign consumer inflation data, and said he wants the central bank to go ahead with two more 25-basis-point rate hikes this year.
Meanwhile St. Louis Federal Reserve President James Bullard said Thursday that he has stepped down from his position at the regional Fed bank and will next month begin working as the first dean of the new business school at Purdue University in Indiana.
And one more batch of data is ahead, with import prices for June due at 8:30 a.m. Eastern, with preliminary consumer sentiment for July at 10 a.m.
In banking news, investors were turning their attention to the start of second-quarter earnings season on Friday with JPMorgan Chase & Co.
JPM,
and Wells Fargo & Co.
WFC,
both reporting market-pleasing results. Shares of both companies were higher in premarket trade.
This post was originally published on Market Watch
