US Treasury yields dropped on Friday as investors analyzed the state of the economy after a series of reports this week. The 10-year yield fell by over 4.5 basis points to 4.478%, while the 2-year yield decreased by more than 5 basis points to 4.263%. One basis point is equivalent to 0.01%.
Reports released on Friday showed retail sales declined 0.9% in January, less than expected, but December’s revised gain of 0.7% was higher than initially reported. This suggests that the economy may not be as hot as previously thought.
The producer price index (PPI) and consumer price index (CPI) reports also exceeded expectations, with PPI rising 3.5% for the year and CPI higher than forecast. However, these indicators hinted at a softer personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, which will be released later this month.
Meanwhile, US President Donald Trump signed an executive order introducing reciprocal tariffs on foreign nations, citing unfair trade practices as the reason. Investors initially worried about the move but were reassured when Trump delayed implementing levies indefinitely.
Source: https://www.cnbc.com/2025/02/14/us-treasury-yields-investors-weigh-the-state-of-the-us-economy-.html