As market participants anticipated a fresh round of economic data, U.S. Treasury yields slightly declined on Friday.
The yield on the standard 10-year Treasury note decreased by a little less than 1 basis point to 2.8857%. A fraction of a basis point less, or 3.1554%, was deducted from the yield on the 30-year Treasury bond. A basis point, or 0.01%, is equal to the inverse relationship between yields and prices.
Following a second economic report that indicated a slowdown in inflation, the yield on the shorter-term 2-year Treasury note dipped 1 basis point to 3.215% in the previous session.
The actions assisted in reducing yield curve inversions, which Wall Street views as signs of an impending recession.
The producer price index, which measures the prices paid for goods that are in high demand, decreased by 0.5% from June to July, marking the first monthly decline since April 2020, the month after Covid-19 was declared a pandemic. The increase of 0.2% was what economists polled by Dow Jones were anticipating.
The PPI was the second report this week to indicate a reduction in price pressures. Data released on Wednesday revealed that the 8.5% annual increase in consumer prices in the United States in July was slowed from the previous month in large part by a decline in oil prices. An annual increase of 8.7% was predicted by economists.
Investors began to doubt the likelihood of a Federal Reserve rate hike slowdown as early as September as a result of the data, which showed a decline in inflation.
On Thursday, market participants will once again watch for the release of economic data to get more information on the state of the American economy.
A preliminary reading of consumer sentiment for August is scheduled to be released at 10 a.m. ET after the import prices for July are announced at around 8:30 a.m. ET.