Bond yields were range-bound Friday, as the market steadies ahead of critical inflation data next week.
What’s happening
-
The yield on the 2-year Treasury
BX:TMUBMUSD02Y
was 4.94%, down 0.9 basis points. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
BX:TMUBMUSD10Y
was 4.24%, down 0.4 basis points. -
The yield on the 30-year Treasury
BX:TMUBMUSD30Y
was 4.35%, up 0.5 basis points.
What’s driving markets
A wave of Federal Reserve officials spoke on Thursday, leaving little doubt that the Fed won’t hike rates in September, even as differences emerged on whether the central bank will still have to take rates higher as early as November.
Dallas Fed President Lorie Logan said that if the Fed skips a rate hike at its meeting in two weeks, it doesn’t imply they will stop hiking for good.
Thursday saw a surprise decline in initial jobless claims, just a day after the release of a surprisingly resilient services index. That said, the Wall Street Journal reported Walmart is paying new workers slightly less than it did as recently as three months ago, a sign that the labor market is cooling off.
There aren’t any major economic or corporate releases set for Friday, with the highlight being a speech from San Francisco Fed President Mary Daly at 11 a.m. Eastern. The crucial consumer price index for August will be released on Wednesday.
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