Treasury yields rise as markets digest GDP report look ahead to consumer data

Treasury yields rise as markets digest GDP report look ahead to consumer data

Treasury yields climbed on Friday, erasing some of Thursday ‘s losses as markets absorbed stronger than expected gross domestic product growth and looked ahead to personal income and spending data releases. The yield on the 10-year Treasury was at 3.9689% at around 4:50 a.m. ET, having risen about 3 basis points after dipping by as much as 11 basis points on Thursday . The 2-year Treasury yield was last up by 2 basis points to 4.3482%. It had fallen by around 12 basis points on Thursday . Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.Personal spending and income figures are expected on Friday. Investors will be looking at the data to assess how persistent inflation and interest rate hikes are affecting consumers . The final consumer sentiment reading is also due to be released. GDP data released on Thursday showed that the U.S. economy grew by 2.6% in the third quarter. That was above the 2.3% growth predicted by economists in a Dow Jones survey. This suggested that inflation may be starting to ease. Lowering inflation has been a top priority for the Federal Reserve, and the central bank has been hiking interest rates to do so. Concerns about the speed and height of the hikes leading the U.S. economy into a recession have been spreading amongst investors ahead of the Federal Reserve’s meeting next week. While a 75 basis point rate hike is widely expected from the central bank, uncertainty about its future policy and a potential slowdown of hikes at the end of the year has been growing.

cnbc.com