investors await key inflation report

Treasury yields rose on Friday as investors awaited key inflation figures and gauged the outlook for the U.S. economy after Thursday’s gross domestic product report came in better than expected.

As of 4:35 a.m. ET, the benchmark return 10-year cash flow rose more than four basis points to 3.5367%. The Cash 2 years the yield last traded at 4.199% after rising about two basis points.

Yields and prices have an inverse relationship and one basis point equals 0.01%.

Investors had been waiting for the release of the Personal Consumption Expenditures Price Index report, which is one of the Federal Reserve’s favored measures of inflation, on Friday. It reflects how much consumers spend on goods and services.

Personal income and spending figures are also due on Friday.

The data could affect the Fed’s next interest rate decision, which is expected at the end of its next meeting on Feb. 1. Many investors are hoping the central bank will further slow the pace of interest rate hikes and announce a 25 basis point hike. afterwards.

Concerns about the pace of rate hikes that have so far driven the US economy into recession have spread in recent months.

Investors also digested economic data released on Thursday, including the GDP reading for the last quarter of 2022. It showed the US economy grew 2.9%, which was just above the 2, 8% expected by economists previously polled by Dow Jones.

Earnings season also continued to weigh on investors’ minds, with many focusing on corporate forecasts of how they expect the economy to develop. American Express and Chevron ware among those reporting on Friday.

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