10-year Treasury yield rises, traders look ahead to key U.S. inflation data
The 10-year Treasury yield rose Friday as investors looked to economic data and comments from Federal Reserve officials to assess the outlook for inflation and monetary policy.
The 10-year Treasury yield was trading at 3.745% after rising by more than 6 basis points. The yield on the 2-year Treasury was up by slightly more than 2 basis point at 4.53%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.359% | UNCH |
| US3M | U.S. 3 Month Treasury | 5.389% | UNCH |
| US6M | U.S. 6 Month Treasury | 5.38% | +0.008 |
| US1Y | U.S. 1 Year Treasury | 5.165% | +0.024 |
| US2Y | U.S. 2 Year Treasury | 4.873% | +0.04 |
| US10Y | U.S. 10 Year Treasury | 4.455% | +0.041 |
| US30Y | U.S. 30 Year Treasury | 4.583% | +0.029 |
Investors assessed the outlook for the U.S. economy, especially regarding whether inflation is easing, and what that could mean for monetary policy.
Both consumer sentiment and short-term inflation expectations increased in February, according to data from a well-followed survey from University of Michigan released Friday.
In comments made throughout the week, central bank officials have indicated that their battle with inflation is not yet over and that there could be further interest rate hikes, depending on economic data.
Many investors are, however, concerned that the pace of rate hikes and keeping them higher for longer will lead to a recession. They will be watching for the consumer price index reading and other economic data coming next week.
On Thursday, the weekly jobless claims reading came in at 196,000, an increase of 13,000 from the previous week. Many investors saw this as a sign that the job market could be easing, which has been one of the Fed's policy aims as it has worked to cool the economy.