Treasury yields fall as investors weigh economic conditions – NBC 5 Dallas-Fort Worth

U.S. Treasury yields fell on Friday as investors weighed the path to interest rates given the state of the economy after the release of inflation data.

4:48 am ET, yields on 10 Year Treasury It was down three basis points to 4.5399%. The 2 Year Treasury The yield was at 4.9200% after falling more than four basis points.

Yield and price have an inverse relationship. One basis point is equal to 0.01%.

Investors considered the state of the economy after key economic data releases and assessed what this meant for upcoming monetary policy decisions from the Federal Reserve.

The March producer price index, which tracks headline inflation, came in below expectations on Thursday, reflecting a 0.2% increase from the previous month. Economists polled by Dow Jones had expected a 0.3% rise.

The reading slightly eased concerns about persistent inflationary pressures. Investors worry about what sticky inflation could mean for interest rate cuts expected later this year.

Market expectations The June-to-September rate cut will be the first in recent days after the March consumer price index came in higher than expected earlier this week. Some investors believe there will be no interest rate cuts for the rest of the year.

The central bank has often said that its decision-making on rate cuts will be based on data and that it is waiting for inflation to ease before easing monetary policy.

On Friday, investors will follow the release of import and export prices and new consumer sentiment insights for April.

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