Investors await the key inflation report

Treasury yields rose on Friday as investors awaited key inflation figures and assessed the outlook for the US economy after Thursday’s better-than-expected gross domestic product report.

At 4:35 am ET, the benchmark yielded 10 Year Treasury It rose four basis points to 3.5367%. The 2 Year Treasury The yield last traded at 4.199% after rising two basis points.

Yields and prices have an inverse relationship and one basis point is equal to 0.01%.

Investors were looking forward to Friday’s release of the Personal Consumption Expenditure Price Index, one of the Federal Reserve’s favorite inflation measures. It reflects how much consumers spend on goods and services.

Personal income and expenditure figures are also due on Friday.

The data could influence the central bank’s next interest rate decision at the end of its next meeting on February 1. Many investors expect the central bank to further slow the pace of interest rate hikes and announce a 25 basis point increase. After.

Concerns about the pace of rates tipping the U.S. economy into recession have spread in recent months.

Investors also digested economic data released on Thursday, including GDP measurement for the final quarter of 2022. The US economy showed a 2.9% expansion, slightly higher than the 2.8% expected by economists previously surveyed by Dow Jones.

Earnings season continues to weigh on the minds of investors, with many focusing on the guidance of companies on how they expect the economy to develop. American Express and Chevron ware were among those reporting on Friday.

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