The 10-year Treasury yield rose about five basis points to 4.692% on Friday after retail sales unexpectedly fell in July and U.S. officials signaled tougher measures against Iran. Shorter- and longer-dated Treasuries moved higher too, even as tame inflation prints this week worked in the other direction.
The 10-year U.S. Treasury yield rose about 5 basis points to 4.692% on Friday. The move came as traders weighed a weak retail sales report against fresh U.S. rhetoric on Iran.
Retail sales fell 0.6% in July, confounding economists polled by Dow Jones who had called for a 0.1% rise. The 2-year Treasury yield, which tracks Federal Reserve policy expectations more closely, added 2 basis points to 4.161%. The 30-year bond yield advanced more than 5 basis points to 5.267%.
Yields initially jumped after Treasury Secretary Scott Bessent warned of fresh measures aimed at isolating Iran economically, telling Newsmax the measures would be unprecedented. His comments followed Defense Secretary Pete Hegseth telling reporters that U.S. forces could maintain an indefinite blockade of Iranian ports.
The producer price index was flat month over month in July, below the 0.2% increase economists had expected. That followed a consumer price index reading a day earlier that came in line with economist expectations.
According to ING strategists: "It absolutely eases higher rates pressure." They added that real yields remain higher and will likely stay so, even as this week's inflation data proved contained and welcome for Treasuries.
Source: CNBC
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