The decline occurred after it was known that sales fell 0.7% more than expected.
The Treasury bond yields U.S. prices fell on Thursday after a reading on consumer spending fell sharply in January, although other data indicated that the fight against inflation on the part of the Booking Federal (Fed) It was far from over.
The yield on the benchmark 10-year US Treasury debt fell 3 basis points to 4.234%, marking its second consecutive decline, following Tuesday’s rebound following an encouraging consumer price reading. The yield on the 30-year bond fell 3 basis points, to 4.419%.
A closely watched part of the US Treasury yield curve, which measures the difference between the yields on two-year and 10-year Treasury bonds, considered an indicator of economic expectationsstood at -32.93 basis points, slightly below Wednesday’s -32.28.
The two-year U.S. Treasury yield, which typically moves in step with expectations of interest rates, fell 1.5 basis points, to 4.5634%.
Fall in retail sales
The Census Bureau of the Department of Commerce He said retail sales fell 0.8% last month, well below the estimate of economists polled by Reuters who expected a 0.1% drop, and following good data from the holiday season.
Other data, however, showed that the initial requests for unemployment benefit fell 8,000 to a seasonally adjusted 212,000 for the week ended February 10, slightly below the estimate of 220,000. On the other hand, the prices of US imports registered the largest increase in almost two years in January, due to the rise in the price of oil and other goods.
Markets have pushed back expectations about when the Fed will cut rates this year, with an 82.2% chance of a reduction of at least 25 basis points (bps) at the central bank’s June meeting, according to CME’s FedWatch tool. Expectations of a decline in May have fallen to 40.6%, compared to 60% a week ago.
Source: Ambito
