U.S. Treasury yields dropped further on Friday morning after a round of data indicated that the economy may be contracting.
The yield on the benchmark 10-year Treasury note was down by 2 basis points at 3.5242%, while the yield on the 30-year Treasury bond slipped around 2 basis points to 3.7339%. Yields move inversely to prices.
Yields declined sharply on Thursday as a fresh round of economic reports pointed to a larger-than-expected economic slowdown. The Philadelphia Fed manufacturing index showed a much greater contraction than forecast this month, while last week’s jobless claims increased from the previous week.
Investors continue to weigh up the Federal Reserve’s monetary policy trajectory, with the market pricing in another 25 basis point interest rate hike at the central bank’s early May meeting.
Traders will be closely watching Friday’s S&P Global flash PMI (purchasing managers’ index), a good gauge of economic health, due at 9:45 a.m. ET.
There are no Treasury auctions scheduled for Friday.
Source link: https://www.cnbc.com/2023/04/21/treasury-yields-continue-to-fall-on-signs-of-economic-contraction.html