Treasury yields edged lower on Friday after this week's post-Fed surge, as investors weighed softer GDP growth, still-elevated core PCE inflation and upcoming labor-market data.
U.S. Treasury yields moved lower early Friday, reversing some of this week's sharp post-Federal Reserve rise as investors assessed fresh inflation and growth data ahead of key labor-market reports. At 3:30 a.m. ET, the 30-year Treasury bond yield was down nearly 2 basis points to 5.188%, the 10-year Treasury yield was 1 basis point lower at 4.647%, and the 2-year Treasury note yield hovered just above flat at 4.231%. The move followed a volatile stretch after the Fed voted 9-3 on Wednesday to hold its key interest rate steady in a 3.5% to 3.75% range. Earlier in the week, the decision helped drive a steepening in the Treasury curve as shorter-dated yields eased while long-dated debt remained under pressure. Investors also parsed the personal consumption expenditures index, with core PCE rising 0.1% on the month and 3.3% from a year earlier. Economists polled by Dow Jones had expected 0.2% monthly and 3.3% annual readings. Separate GDP data showed U.S. growth slowed to 1.5% in the second quarter, below the 1.8% Dow Jones consensus estimate. Markets were also awaiting the second-quarter employment cost index and Michigan consumer sentiment figures later Friday, as well as next week's JOLTs job openings report for June and the July nonfarm payrolls report.