U.S. Treasury yields edged higher on Friday as investors awaited consumer sentiment data and were relieved by tame inflation data this week.
At 6 a.m. ET, the benchmark 10-year Treasury yield was more than 2 basis points higher at 4.299%. The 2-year Treasury yield was up 2 basis points at 3.973%.
One basis point is equal to 0.01% and yields move inversely to prices.
After a busy week of economic data, investors are awaiting the University of Michigan consumer sentiment index, which will offer an outlook on consumer confidence with regard to the growth of the U.S. economy as well as personal finances.
That follows the producer price index report on Thursday, which came in flat for February, showing no gain for the month after jumping 0.6% in January.
The consumer price index report on Wednesday came in softer than expected, up 0.2% monthly, and 2.8% on an annual basis. It provided some relief for investors who were worried about the potential impact of U.S. President Donald Trump’s tariffs on inflation.
Trump doubled down on his tariff threats on Thursday, saying he won’t be changing his mind.
“I’m not going to bend at all,” Trump said when asked about his tariff plans during an Oval Office meeting with NATO Secretary General Mark Rutte. “We’ve been ripped off for years, and we’re not going to be ripped off anymore.”
Investors are also gearing up for the Federal Reserve’s policy meeting scheduled for next week, where traders are pricing in a 97% likelihood of interest rates holding steady, according to CME’s FedWatch tool.
