The U.S. 10-year Treasury was mixed on Friday as investors awaited key inflation data.
The yield on the 10-year Treasury stood little changed at 3.865%, while the yield on the 2-year Treasury rose nearly 1 basis point to 3.902%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Market participants will closely monitor the release of the U.S. personal consumption expenditures (PCE) price index on Friday.
The Federal Reserve’s preferred inflation gauge is scheduled to be published at 8:30 a.m. ET, alongside the latest personal income data and consumer spending figures.
Chicago Purchasing Managers’ Index data for August and a final reading of consumer sentiment data for August will both follow slightly later in the session.
The PCE reading, a sprawling measure of what consumers are paying for a variety of goods and services, could offer more guidance on the outlook for interest rates.
It comes after economic data released Thursday further eased recession concerns. Weekly jobless claims fell from the prior week, while second-quarter gross domestic product was revised higher to 3% growth from an initial 2.8% rate.
Fed Chair Jerome Powell said last week that “the time has come for policy to adjust,” bolstering expectations for a rate cut at the central bank’s next meeting. Powell declined to provide exact indications on the timing or extent of the cut, however.
Market participants have fully priced in a rate cut at the Fed’s Sept. 18 meeting. Traders are currently pricing in a roughly 67% chance of a 25-basis-point rate cut next month, with 33% pricing in a 50-basis-point rate cut, according to the CME Group’s FedWatch Tool.
— CNBC’s Jeff Cox contributed to this report.