US Treasury yields dropped lower on Friday as investors processed this week’s economic data and ongoing trade tensions. The 10-year Treasury yield fell by 4 basis points to 4.423%, while the 2-year yield declined by over 4 basis points to 3.87%. The 30-year note also saw a slight decrease, yielding at 4.99%.
The decline in yields is largely attributed to concerns about President Trump’s trade policies, particularly his demands for tariffs on EU imports ranging from 15% to 20%. This news weighed on the market on Friday afternoon.
However, investors were also encouraged by recent economic data. The University of Michigan’s Survey of Consumers showed overall sentiment increased 1.8% in July, while consumers’ inflation outlook dropped to its lowest level since February. Housing starts and building permits also saw an improvement, with June numbers totaling a seasonally adjusted annual rate of 1.32 million.
According to Marcus Jennings, fixed income strategist at Schroders, the US labor market remains resilient despite uncertainty from President Trump’s trade policies. “Job growth has been respectable – albeit far from robust,” he said, adding that corporate profitability is holding steady, making a significant rise in unemployment rates unlikely.
Source: https://www.cnbc.com/2025/07/18/us-treasury-yields-investors-await-further-economic-data-.html