investors await important economic data

Treasury yields were flat on Thursday as investors awaited economic data that could provide clues about how the US economy is faring as headwinds continue.

The benchmark 10-year Treasury was trading at around 3.473% at 5:47 a.m. ET. The 2-year treasury The yield was last up by just under 1[ads1] basis point to 4.143%.

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

A series of key economic reports are expected on Thursday, which investors will look for clues about the state and outlook for the US economy. Many are concerned about potential pressure from high inflation and high interest rates weighing on the economy.

Gross domestic product data for the last quarter of 2022 is expected, as are durable goods and housing sales reports for December. Weekly initial data on jobless claims are also due.

Investors will also be closely watching additional earnings reports, paying particular attention to the companies’ future guidance, which may indicate their expectations for the economy. American Airlines and Intel are among those reporting on Thursday.

Fears of a recession have grown stronger in recent months as many investors believe the pace of the Federal Reserve’s rate hikes could cause the economy to contract.

The Fed’s next meeting is on 31 January and 1 February. Markets expect the central bank to raise interest rates a further 25 or 50 basis points as the fight against persistent inflation continues.