The yield on US government debt fell to its lowest level in months after retail sales for January came in lower than expected, sparking concerns about the strength of the economy. The 2-year and 10-year Treasury yields closed at one-week lows, with the 30-year rate also reaching a low since February.
According to data released on Friday, US retail sales fell by 0.9% in January, exceeding expectations of a 0.2% decline. Economists attributed this drop to consumers taking a break from holiday shopping and cold weather keeping people indoors.
The disappointing report led economists to revise their estimates of GDP growth downward, with some even predicting a rate cut from the Federal Reserve. Despite expectations of lower interest rates and inflation, market analysts warn that any sign of consumer weakness is bad news for markets.
Source: https://www.marketwatch.com/story/treasury-yields-hold-mostly-steady-ahead-of-retail-sales-data-e9080d1e