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HomeFinanceTreasury yields ease ahead of retail sales data

Treasury yields ease ahead of retail sales data


Treasury yields were trading mostly steady on Friday, as investors awaited more economic updates, including retail sales, and the start of earnings season.

What’s happening?
  • The yield on the 2-year Treasury 
    TMUBMUSD02Y,
    3.962%

    fell 2.1 basis points to 3.96%. Yields move in the opposite direction to prices.

  • The yield on the 10-year Treasury 
    TMUBMUSD10Y,
    3.439%

    was 3.43%, down 1.7 basis points

  • The yield on the 30-year Treasury
    TMUBMUSD30Y,
    3.692%

      was nearly flat at 3.69%.

  • The 1-month T-bill rate 
    TMUBMUSD01M,
    3.946%

    rose 17 basis points to 3.863%, after tumbling 27.7 basis points to 3.863% on Thursday, marking its lowest level since late December.

What’s driving markets?

Data ahead for Friday includes March retail sales due at 8:30 a.m. Eastern, alongside import prices for the same month, with March industrial production at 9:15 a.m. Business inventories for February are due at 10 a.m. as well as the University of Michigan consumer sentiment index for April. Federal Reserve Gov. Christopher Waller is due to speak at 8:45 a.m.

Inflation data this week showed some easing pressures, with consumer prices up modestly in March, while wholesale prices saw their biggest drop in nearly three years. And there was a small, but steady increase in Americans applying for unemployment benefits last week.

Expectations for a 25 basis point interest rate hike at the central bank’s May meeting are at 69.2%, versus 30.8% who expect no change, according to the CME’s FedWatch Tool.

Markets will also be watching for the kickoff of earnings season from the banking sector, following a crisis last month that brought about the demise of Silicon Valley Bank and two other lenders. JPMorgan Chase & Co.
JPM,
+0.38%

 Wells Fargo & Co.
WFC,
+1.20%

and Citigroup Inc.
C,
+0.81%

are all due to report.



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