In anticipation of a new round of economic data, market participants saw a small decline in U.S. Treasury yields on Friday.
The benchmark 10-year Treasury note’s yield decreased by less than one basis point to 2.8857%. Additionally, the 30-year Treasury bond yield decreased by less than 1 basis point to 3.1554%. A basis point is equivalent to 0.01%, and yields move inversely to prices.
The 2-year Treasury yield, which is shorter-term, dropped 1 basis point to 3.215% after falling the previous day as a result of another economic report that indicated a decrease in inflation.
The actions assisted in reducing yield curve inversions, which Wall Street interprets as signs of an impending recession.
The producer price index, which measures the prices consumers pay for final demand goods, decreased 0.5% from June, marking the first monthly decline since April 2020, the month after the declaration of the Covid-19 epidemic. According to economists surveyed by Dow Jones, a 0.2% increase was anticipated.
The PPI was the second data this week to indicate that pricing pressures were lessening. According to data released on Wednesday, consumer prices in the United States increased by 8.5% y/y in July, decreasing from the previous month in large part because of a decline in oil prices. Economic experts anticipated a yearly increase of 8.7%.
Investors questioned the likelihood that the Federal Reserve will halt the pace of rate hikes as soon as September in light of the data, which showed a slowing of inflation.
On Thursday, market investors will wait for the release of economic statistics once more in hopes of learning more about the state of the American economy.
At about 8:30 a.m. ET, import prices for July will be made public. At 10 a.m. ET, a preliminary assessment of consumer confidence for August is scheduled to be revealed.