U.S. Treasury yields moved lower on Friday as investors anticipate a batch of economic data and weigh the state of the U.S. economy.
At 5:33 a.m. ET, the 10-year Treasury yield was over 1 basis points lower at 4.45%. The 2-year yield was around 2 basis points lower at 3.89%. The 30-year note was lower by over 1 basis point, yielding at 5%.
One basis point is equal to 0.01% and yields move inversely to prices.
Investors are awaiting more economic data on Friday, including the preliminary reading for July’s Michigan Consumer Sentiment due to be released at 10 a.m. ET. It’s expected to show a reading of 61.8, up from the prior reading of 60.7, according to economists polled by Dow Jones.
They will also keep an eye on preliminary building permits and housing starts data, which is set to be released at 8:30 a.m. ET.
Investors were cheered by signs that the U.S. economy remains solid on Thursday, after jobless claims for the week ending July 12 decreased from the previous week, while retail sales data for June came in better than expected.
“Another month passes and it’s another month where the US labour market shows repeated signs of resilience,” Marcus Jennings, fixed income strategist at Schroders, said in a note. “Job growth has been respectable – albeit far from robust – despite the uncertainty caused by President Trump’s trade policy.”
“It’s not just in payrolls, we see signs of stability on multiple fronts, and with corporate profitability remaining unchallenged, we do not expect a material rise in the unemployment rate,” Jennings added.
