At 5:35 ET: The return of the benchmark 10-year Treasury bond rose 3 basis points to 3.795%, while the 2-year yield rose 6 basis points to 4.675%. Yields move in the opposite direction to prices.
At the longer end of the curve is the rate of return 30-year government bond gained 2 basis points to 3.915%.
Investors reacted to June’s PPI index on Thursday, which showed a weaker-than-expected monthly rise of 0.1% in both headline and core metrics. This followed Wednesday’s CPI, which came in at 3% on an annualized basis in June, below consensus expectations and the lowest level since March 2021.
Fed officials have repeatedly stressed that the fight against inflation is far from over and that the market is largely pricing in a quarter-point rate hike at the next central bank meeting later this month.
Traders will be watching for June import prices and preliminary readings from the University of Michigan’s latest consumer sentiment report, both due out Friday morning.
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