this U.S. 10-Year Treasury Bond Little changed on Thursday as investors looked ahead to Friday’s key inflation report.
The 10-year Treasury yield was slightly lower at 3.839%, while U.S. Treasury yields were slightly lower. 2-year Treasuries rise Less than 1 basis point to 3.873%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
Market participants are awaiting a fresh batch of economic data, with focus turning to the Federal Reserve’s preferred inflation gauge on Friday.
The latest U.S. initial jobless claims data and second-quarter gross domestic product data are both scheduled to be released around 8:30 a.m. ET on Thursday. July pending home sales data will be released later.
U.S. personal consumption expenditures (PCE) will be released on the last trading day of August. The data may provide more clues about the outlook for interest rates. Fed officials use the PCE indicator as the main benchmark for measuring inflation.
Fed Chairman Powell explain Late last week, “the time for policy adjustment has arrived,” boosting expectations for a rate cut at the central bank’s next meeting. However, Powell declined to provide precise information on the timing or magnitude of the rate cut.
Market participants firmly expect the Federal Reserve to cut interest rates at its September 18 meeting. Traders currently see a 65.5% chance of a 25 basis point rate cut next month and a 34.5% chance of a 50 basis point rate cut. CME Group’s FedWatch Tool.
