Authorities bond yields are unchanged after the info exhibits rising private incomes and rising costs
Key 10-year US Treasury bond yields were unchanged on Friday morning after consumer spending data showed a sharp increase in personal income and spending, but only a modest increase in prices.
The yield on the 10-year benchmark Treasury note rose slightly to 1.644% around 8:40 a.m. CET. The yield on the 30-year government bond fell to 2.306%. The returns move inversely to the prices.
Personal income and expenses rose 21.1% and 4.2%, respectively, in March, according to the Bureau of Economic Analysis, as the economic recovery continued to pick up on further federal stimulus.
The PCE price index rose 0.5% while the core PCE excluding food and energy rose 0.4% for the month. Economists polled by Dow Jones had expected the core index to rise 0.3%.
The PCE inflation metric is being closely monitored by the Federal Reserve, and Chairman Jerome Powell warned earlier this week that prices could rise temporarily. The index was up 0.1% and 0.2% in the previous two months of this year.
Yields rose during Thursday’s session following the release of strong economic data for the first quarter.
The U.S. Department of Commerce announced that gross domestic product rose 6.4% in the first quarter, up from 6.5% expected by economists polled by Dow Jones.
Meanwhile, the Department of Labor reported that 553,000 new jobless claims were filed last week, just above the 528,000 estimated by economists.
There are no auctions on Friday.
– CNBC’s Maggie Fitzgerald and Thomas Franck contributed to this report.