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U.S. government bonds pressed pause on Friday after a two-day rally, as investors geared up for a fresh batch of data including producer prices and a gauge of consumer sentiment.
What’s happening
-
The yield on the 2-year Treasury note
BX:TMUBMUSD02Y
rose 2 basis points to 4.605% from 4.565% on Thursday. -
The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
rose 3 basis points to 4.266%, up from 4.239% on Thursday. -
The yield on the 30-year Treasury note
BX:TMUBMUSD30Y
gained 2 basis points to 4.438% from 4.421% a day earlier.
What’s driving markets
Traders are getting ready for another batch of economic data on Friday, in what has been an eventful week for markets. January housing starts and the producer-price index, which is expected to slip 0.1%, are both due at 8:30 a.m. The University of Michigan preliminary consumer sentiment survey for February is due at 10 a.m.
Bond yields fell on Thursday after data showed weaker-than-forecast retail sales, though a couple of Federal Reserve factory activity gauges rebounded.
The data helped to cool some jitters following a higher-than-expected January consumer price index on Tuesday that sparked concerns the Federal Reserve could further push back plans to start cutting interest rates, sending Treasury yields to levels not seen since at least December.
Speaking after the market closed on Thursday, Atlanta Fed President Raphael Bostic said investors will likely have to wait until after July for rate cuts given the economy’s current strength. Bostic said he wanted to be “sure… that we’re getting true signals, as opposed to volatility.”
Investors will also hear from Fed Vice Chair for Supervision, Michael Barr, who is scheduled to speak at 9:10 a.m., followed later by San Francisco President Mary Daly at 12:10 p.m.
