Bond yields edged higher on Friday, even amid data showing a deteriorating jobs market, slowing price pressures and regional bank difficulties.
What’s happening
-
The yield on the 2-year Treasury
TMUBMUSD02Y,
3.912%
was 3.92%, up 0.8 basis points. Yields move in the opposite direction to prices. -
The yield on the 10-year Treasury
TMUBMUSD10Y,
3.414%
was 3.41%, up 2.5 basis points. -
The yield on the 30-year Treasury
TMUBMUSD30Y,
3.771%
was 3.77%, up 2.5 basis points.
What’s driving markets
There was a bull flattening of the curve — i.e., longer-dated bonds slipped, even as short-term yields inched up — on Thursday after reports showing rising jobless claims and slowing producer price pressure.
Data released by the Fed late Thursday showed increased usage both of the discount window and of its new bank lending facility. “Bank borrowing from the discount window and Bank Term Funding Program increased slightly, probably as some smaller banks experienced new deposit outflows.” said economists at Citigroup. PacWest on Thursday reported a decline in deposits that helped pressure regional bank stock prices.
Friday will see data including the University of Michigan’s consumer-sentiment index released.
A meeting scheduled between President Joe Biden and top Congressional leaders on the debt ceiling was postponed.
This story originally appeared on Marketwatch
