Latest news with #MichiganConsumerSentiment
CNBC
5 days ago
- Business
- CNBC
Treasury yields fall as investors digest latest inflation data
U.S. Treasury yields were lower on Wednesday as investors digested the latest inflation data and considered the impact of tariffs on the U.S. economy. At 5:18 a.m., the 10-year Treasury yield was down over three basis points to 4.255%, while the 2-year Treasury yield was over one basis point lower at 3.711%. The 30-year Treasury bond yield was over 4 basis points down to 4.841%. One basis point is equal to 0.01%, and yields and prices move in opposite directions. Investors were relieved after July's inflation reading came in tamer than expected, calming fears that tariffs are not causing prices to accelerate. Traders are now pricing in a nearly 96% chance of a rate cut at the Federal Reserve's September meeting, according to CME's FedWatch Tool. "When it comes to analysing the tariff impact, it's also worth noting that the effective tariff rate has fluctuated significantly in recent months, and hasn't moved up in a straight line, so that's also making it trickier to gauge the full impact," Deutsche Bank analysts said in a note. "So when it comes to the impact on inflation, it may be some time before we get a clear signal, as several tariffs were imposed as recently as August 7, whilst there are potentially more in the pipeline like pharmaceuticals and semiconductors," they added. The inflation report comes ahead of the Fed's meeting in Jackson Hole, Wyoming, from Aug. 21-23, and could help shape monetary policy decisions. Investors will now turn their attention to the producer price index on Thursday, which will show how much producers are charging wholesalers or retailers before it reaches the consumer. Other economic data investors will keep an eye out for this week include July's retail sales data on Friday and the Michigan Consumer Sentiment.
CNBC
18-07-2025
- Business
- CNBC
Treasury yields inch lower as investors await more economic data
U.S. Treasury yields moved lower on Friday as investors anticipate a batch of economic data and weigh the state of the U.S. economy. At 5:33 a.m. ET, the 10-year Treasury yield was over 1 basis points lower at 4.45%. The 2-year yield was around 2 basis points lower at 3.89%. The 30-year note was lower by over 1 basis point, yielding at 5%. One basis point is equal to 0.01% and yields move inversely to prices. Investors are awaiting more economic data on Friday, including the preliminary reading for July's Michigan Consumer Sentiment due to be released at 10 a.m. ET. It's expected to show a reading of 61.8, up from the prior reading of 60.7, according to economists polled by Dow Jones. They will also keep an eye on preliminary building permits and housing starts data, which is set to be released at 8:30 a.m. ET. Investors were cheered by signs that the U.S. economy remains solid on Thursday, after jobless claims for the week ending July 12 decreased from the previous week, while retail sales data for June came in better than expected. "Another month passes and it's another month where the US labour market shows repeated signs of resilience," Marcus Jennings, fixed income strategist at Schroders, said in a note. "Job growth has been respectable – albeit far from robust – despite the uncertainty caused by President Trump's trade policy." "It's not just in payrolls, we see signs of stability on multiple fronts, and with corporate profitability remaining unchallenged, we do not expect a material rise in the unemployment rate," Jennings added.
CNBC
25-04-2025
- Business
- CNBC
Treasury yields little changed as investors hope for U.S.-China trade deal
U.S. Treasury yields were little changed on Friday as investors weighed U.S. President Donald Trump's policy reversal and remained optimistic about a possible trade deal between the U.S. and China. At 4:45 a.m. ET, the 10-year Treasury yield was down less than a basis point at 4.297%, while the 2-year Treasury yield was up just over one basis point at 3.807%. One basis point equals 0.01% and yields and prices move in opposite directions. Investors are coming off a week of Trump backtracking on comments and policies, with the White House leader indicating earlier this week an easing of trade tensions between the U.S. and China. U.S. tariffs on China are currently at 145%. Trump said on Tuesday that the tariff rate will "come down substantially. But it won't be zero." And while Treasury Secretary Scott Bessent said "there is an opportunity for a big deal here" on trade between the two countries, China said on Thursday that there were no ongoing trade discussions until the U.S. drops all tariff measures. On top of that, Trump called Federal Reserve Chair Jerome Powell a "major loser" on Monday, applying pressure in recent weeks to get the central bank leader to lower interest rates. That has led to concerns that Trump may fire Powell, which could be a major disruption to markets. However, Trump clarified earlier this week that he has "no intention" of firing Powell, offering some relief to markets. Investors will now await the Michigan Consumer Sentiment data for April, due out at 10:00 a.m. ET. Economists polled by Dow Jones expect the reading to remain unchanged from the previous month at 50.8.
