3 days ago
- Business
- Wall Street Journal
Treasury Yields Fall Amid Concerning Labor Data, Mild Inflation
0900 ET – U.S. labor and inflation data deepen a decline in Treasury yields. Weekly jobless claims were unchanged from the previous week's upwardly revised pace, at 248,000. Economists surveyed by WSJ expected 246,000. Continuing claims, a measure of the unemployed population, was 1.96 million, the highest level since November 2021. May's wholesale price inflation was 0.1%, accelerating from April's 0.2% deflation and below consensus of a positive 0.2%. The combination of slower-than-expected inflation and concerning labor data underscores bets that the Fed may need to change its hawkish position. Yields were already declining and fell further after the data. The 10-year Treasury yield is at 4.360% and the two-year at 3.891%. ( @ptrevisani)
0614 GMT – A downside surprise in U.S. CPI data gave only a small boost to Treasurys, probably because tariff-driven price hikes still look imminent, says Capital Economics' James Reilly in a note. That said, these price hikes look discounted in markets, shielding Treasury yields from rising pressure, the senior markets economist says. 'We don't expect much upwards pressure on Treasury yields even as the inflationary impact of tariffs eventually feeds into U.S. consumer prices,' he says. Capital Economics expects core inflation to rise in coming months but it thinks that investors are already braced for a broadly similar outcome on tariffs, he says. (
