10-year Treasury yield ticks higher as market awaits key inflation data for clues to Fed move

US News

U.S. Treasury yields were slightly higher on Friday as investors await a closely watched inflation number for clues to the U.S. Federal Reserve’s next interest rate move.

Treasurys

The yield on the 10-year Treasury note was up about 1 basis point to 3.6856%, while the yield on the 2-year U.S. Treasury note was little changed at 4.2636%.

Global bond markets sold off this week after the Bank of Japan tweaked its yield curve controls, in a move aimed at cushioning the effects of protracted monetary stimulus measures.

Yields have been rising throughout the week as Fed investors continue to fret over the chances of a recession and what that could mean for monetary policy.

U.S. government data released on Thursday, however, showed gross domestic product increased at an annual rate of 3.2% in the third quarter, higher than a previous estimate of 2.9%. The economy contracted 0.6% in the second quarter.

The Bureau of Economic Analysis will issue November’s personal consumption expenditure report — the Federal Reserve’s preferred inflation measure — on Friday morning. The core personal consumption expenditures price index, which excludes food and energy prices, is expected to have gained 0.2% in November — the same increase seen in October, according to economists polled by Dow Jones.

The personal consumption expenditures price index could give further clues on whether inflation is moderating in the United States.

The Fed has been hiking rates aggressively to try to bring down inflation and has signaled further rises could be ahead. The central bank is expecting to hike its benchmark rate to 5.1% before it can get inflation under control.

Data on U.S. durable goods orders and new home sales will also be released Friday.

CNBC’s Samantha Subin contributed to this report.

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