After weaker-than-expected retail sales, the 10-year Treasury yield decreases.
After weaker-than-expected retail sales data and a hotter inflation print this week, some concern about the strength of the consumer was raised, causing U.S. Treasury yields to fall on Thursday.
The yield on the was 2 basis points lower at 4.244%, while the yield was less than 1 basis point higher at 4.585%.
Prices and yields move in opposite directions. A basis point is equivalent to 0.01%.
Last month, retail sales fell 0.8%, exceeding the 0.3% decline predicted by economists surveyed by Dow Jones.
The latest consumer price index on Tuesday revealed that prices increased more than anticipated in January, leading to a delay in interest rate cut expectations. As a result, Federal Reserve officials have been seeking additional evidence of inflation reduction.
Chicago Fed President Austan Goolsbee on Wednesday advised market participants not to worry too much about the CPI reading, stating that it was still evident that inflation was decreasing. He also indicated that he would not endorse waiting until the 2% target range for inflation has been achieved before initiating rate cuts.
In the fourth quarter of 2023, the U.K. economy contracted by 0.3%, resulting in a technical recession.
— CNBC’s Jeff Cox contributed to the report.
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