The yield on 10-year US Treasury bonds hovered just below 4% on Friday ahead of the release of producer price data and results from the largest US banks.
What is happening
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The yield on the two-year Treasury note BX:TMUBMUSD02Y was 4.27%, up 1.2 basis points. Yields move in the opposite direction to prices.
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The yield on the 10-year Treasury note BX:TMUBMUSD10Y was 3.98%, up 1.3 basis points.
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The yield on the 30-year Treasury note BX:TMUBMUSD30Y was 4.19%, up 1.5 basis points.
What drives the markets?
Data on Thursday showed U.S. consumer prices slightly stronger than expected and cast doubt on whether the Federal Reserve will start cutting interest rates in March, a point amplified by a comment from Cleveland Fed President Loretta Mester.
“The stronger-than-expected headline CPI, led by another strong rise in rents and other services, casts doubt on the timing of the Fed’s first rate cut this year, and keeps US Treasury yields on hold,” said strategists at Société Générale led by Kenneth. For ten years, it is frozen at 4%. Brooks.
“The bond and FX market reaction has been weak, and until incoming data paints a different picture, we may remain stuck in narrow overlapping ranges for a while.”
Friday's session includes producer price index data as well as results from major banks including JPMorgan Chase, Bank of America and Citi.
CL00 oil futures,
It rose after the US and UK launched air strikes on Houthi targets following attacks on ships in the Red Sea, further complicating the inflation picture.
