The yield on the benchmark 10-year Treasury note traded lower by 5 basis points at 2.915%. Meanwhile, the yield on the 30-year Treasury bond rose is less than a basis point to 3.13%.
The 2-year Treasury rate, which is typically more sensitive to US monetary policy changes, was down 11 basis points at 2.809%. The 2-year note reversed some of its losses after falling to a one-week low of 2.895%. Yields move inversely to prices.
The steep first-half losses come at a time when market participants are grappling with soaring inflation and tighter monetary policy.
The core personal consumption expenditures price index, the Fed’s preferred inflation measure, rose 4.7% in May, the Commerce Department reported Thursday. That’s 0.2 percentage points less than the month before, but still around levels last seen in the 1980s. The index was expected to show a year-over-year increase of 4.8% for May, according to Dow Jones.
Stubbornly high inflation levels and the Federal Reserve’s efforts to tackle a surge in prices have resulted in escalating recession worries.
Institute for Supply Management manufacturing data for June, construction spending for May and light vehicle sales for June will all be released at 10 am ET.
— CNBC’s Fred Imbert contributed to this report.
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