Ten-Year Yield Reaches Highest Closing Level In Over A Month

Following the sharp pullback seen over the course of the previous session, treasuries saw further downside during trading on Friday.

Bond prices drifted steadily lower as the day progressed, closing firmly in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 6.1 basis points to 3.744 percent.

The ten-year yield closed higher for the fifth time in six sessions, reaching its highest closing level in over a month.

The continued weakness among treasuries came amid ongoing concerns about the outlook for interest rates ahead of next week’s closely watched inflation data.

Traders are likely to keep a close eye on the data for clues about whether the Federal Reserve will need to raise rates higher than currently anticipated in order to bring down prices.

A University of Michigan report showing a continued improvement in consumer sentiment in February as well as a rebound in near-term inflation expectations also weighed on treasuries.

The report showed the consumer sentiment index rose to 66.4 in February from 64.9 in January. Economists had expected the index to inch up to 65.0.

The consumer sentiment index increased for the third straight month, reaching its highest level since hitting 67.2 in January 2022.

Meanwhile, one-year inflation expectations climbed to 4.2 percent in February from 3.9 percent in January, with expectations rebounding after falling for three straight months.

The inflation data is likely to be in the spotlight next week, although traders are also likely to keep an eye on reports on retail sales and industrial production.

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