investors await important inflation report

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

At 4:35 a.m. ET, the return on the benchmark index 10-year treasury was up over four basis points to 3.5367%. The 2-year treasury The yield last traded at 4.1[ads1]99% after rising around two basis points.

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

Investors awaited the release of the personal consumption expenditures price index on Friday, which is one of the Federal Reserve’s preferred inflation measures. It reflects how much consumers spend on goods and services.

Personal income and consumption figures are also due on Friday.

The data could influence the Fed’s next interest rate decision, which is expected at the conclusion of its next meeting on February 1. Many investors hope that the central bank will further slow the pace of interest rate increases and announce an increase of 25 basis points. thereafter.

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

Investors also digested economic data released on Thursday, including the GDP reading for the final quarter of 2022. It showed the US economy expanded 2.9%, which was just above the 2.8% expected by economists previously surveyed by Dow Jones .

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

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