Bond yields remain more stable than PCE price data
Bond yields remained in a narrow range on Friday ahead of inflation data expected to show the continuation of a period of disinflation.
what’s the matter
The yield on the two-year Treasury note BX:TMUBMUSD02Y rose 1.2 basis points to 4.32%. Yields move in the opposite direction of prices.
The yield on the 10-year Treasury note BX:TMUBMUSD10Y fell 0.5 basis points to 4.12%.
The yield on the 30-year Treasury note BX:TMUBMUSD30Y fell 0.9 basis points to 4.36%.
What is driving the market
The PCE Price Index, the Federal Reserve’s preferred measure of inflation, is released at 8:30 a.m. ET along with personal income and consumer spending data.
Economists expect core PCE prices, excluding food and energy, to rise 0.2%.
December’s data was reflected in the fourth quarter GDP report released Thursday. Economists at Barclays say core PCE prices should rise 0.2% unless October and November data are revised.
Treasury yields on Thursday may have been further influenced by data showing an increase in initial jobless claims.
