U.S. Treasury yields were little changed on Friday as investors digested the latest inflation reading, and awaited further economic data.
At 4 a.m. ET, the 10-year Treasury yield was up more than one basis point to 4.5425%, while the 2-year Treasury yield was down less than a basis point to 4.3075%.
One basis point equals 0.01% and yields and prices move in opposite directions.
Treasurys
On Friday, investors will look to retail sales data for the month of January which will be published at 8:30 a.m. ET, as well as the monthly industrial production report. Federal Reserve Bank of Dallas President Lorie Logan is slated to speak at 3 p.m. ET.
The producer price Index, which measures wholesale prices, came in hotter than expected in January, rising 3.5% for the year, the Bureau of Labor Statistics reported Thursday. Wholesale prices rose 0.4% on the month, higher than the Dow Jones forecast of 0.3%. Wednesday’s consumer price index report also came in above forecast.
Some aspects of the PPI report and the CPI report suggested a softer reading for the personal consumption expenditures price index, the Fed’s preferred inflation gauge which will be published later in the month.
Meanwhile, U.S. President Donald Trump signed an executive order for reciprocal tariffs on foreign nations, saying the plan will treat other countries’ non-tariff policies as unfair trade practices that call for retaliatory tariffs. However, investors’ worries were eased as Trump held off from implementing levies immediately.
The relief over the tariff pause may be short-lived, Mark Malek, chief investment officer at Siebert, told CNBC in an interview.
“The market will have pressure on Friday — there was not enough clear stimulus for the market to trade this way … nothing that would justify this late-day move. I listened very carefully to the president speaking, and there was nothing in there that stood out to me as great for the market,” he said. “Friday is going to be one of those days where people are going to try to figure out what this all means.”