Treasury yields were on the rise on Friday following a day of significant drops as signs of slowing inflation emerged.
Yield Movement
- The yield on the 2-year Treasury TMUBMUSD02Y, 4.636% increased by 2.1 basis points to 4.670%.
- On Thursday, the yield experienced a significant drop of 12.9 basis points to reach 4.611%, the lowest since June 12 according to Dow Jones Market Data.
- The yield on the 10-year Treasury TMUBMUSD10Y, 3.770% rose by 1.4 basis points to 3.784%, rebounding from a low of 3.759% on Thursday.
- The yield on the 30-year Treasury TMUBMUSD30Y, 3.899% remained steady at 3.904%, compared to 3.895% on Thursday.
Factors Influencing the Markets
Treasury yields experienced a rebound on Friday as recent data suggested a slowdown in inflation across the economy. Both producer and consumer prices exceeded expectations for the week.
As per the CME FedWatch tool, markets are currently anticipating a 94.9% probability of the Fed raising interest rates by 25 basis points to a range of 5.25%-5.5% on July 26.
Recent news also highlighted St. Louis Federal Reserve President James Bullard stepping down from his position at the regional Fed bank. He will be assuming the role of the first dean of Purdue University’s new business school in Indiana.
Furthermore, investors can expect additional data releases, including import prices for June at 8:30 a.m. Eastern, along with preliminary consumer sentiment for July at 10 a.m.
Investor attention is now focused on the start of the second-quarter earnings season, with JPMorgan Chase & Co. JPM, +0.49% and Wells Fargo & Co. WFC, +1.04% both reporting impressive results and experiencing an uptick in share prices.
