U.S. Treasury yields fell on Thursday as investors considered what might happen next on inflation and interest rates and awaited comments from Federal Reserve speakers and economic data.
At 4:29 a.m. ET, the yield on the 10-year Treasury note was over three basis points lower at 4.228%. The yield on two-year government bonds recently fell by around one basis point to 4.5676%.
Yields and prices move in opposite directions. One basis point is equal to 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | US 1-month Treasury bonds | 5.393% | +0.012 |
| US3M | 3-month US government bonds | 5.406% | +0.02 |
| US6M | 6-month US government bonds | 5.346% | +0.013 |
| US1Y | US government bonds with a maturity of 1 year | 4.964% | +0.002 |
| US2Y | US Treasury bonds with a 2-year maturity | 4.565% | -0.013 |
| US10Y | 10-year US Treasury bonds | 4.228% | -0.039 |
| US30Y | 30-year US Treasury bonds | 4.403% | -0.045 |
Investors weighed the outlook for inflation and interest rates after the latest consumer price index – released on Tuesday – showed prices rose more than expected in January.
Many investors took that as a sign that rate cuts may be a while off, as Fed officials have indicated in recent weeks that they were looking for more signs of easing inflation before cutting rates.
However, Chicago Fed President Austan Goolsbee suggested on Wednesday that market participants should not be too worried about the consumer price index as it is still “absolutely clear” that inflation is easing. He also said at a Council on Foreign Relations event that he would not support waiting to cut interest rates until the 2% inflation target is reached.
Several more Fed officials are expected to deliver remarks that could provide new clues about the monetary policy outlook.
On the data front, in addition to the weekly report on initial jobless claims, retail sales and import and export prices for January are expected on Thursday.
Elsewhere, data showed the UK economy contracted 0.3% in the fourth quarter of 2023, pushing the country into a technical recession.