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Treasury yields end at 2- to 3-week highs as Fed struggles with last mile of inflation fight

Yields on U.S. government debt finished higher for a fifth straight session on Friday, as traders grappled with data this week that showed the Federal Reserve is struggling with the final stretch of its inflation fight.

What happened

  • The yield on the 2-year Treasury

    TMUBMUSD02Y

    +4.247%

    rose 5.3 basis points to 4.238%, from 4.185% on Thursday. Friday’s closing level was the highest since Nov. 26, based on Dow Jones Market Data.

  • The yield on the 10-year Treasury

    TMUBMUSD10Y

    +4.396%

    jumped 7.5 basis points to 4.398%, from 4.323% on Thursday. Friday’s closing level was the highest since Nov. 22.

  • The yield on the 30-year Treasury

    TMUBMUSD30Y

    +4.600%

    rose 6.7 basis points to 4.614%, from 4.547% on Thursday. Friday’s closing level was the highest since Nov. 21.

  • For the week, the 2-year yield rose 14.3 basis points. Meanwhile, 10- and 30-year yields posted weekly advances of 24.8 basis points and 28.4 basis points, respectively.

What drove markets

Data released on Friday showed the November import-price index rose 0.1%, versus the decline of 0.2% that had been expected by economists polled by the Wall Street Journal. Rising prices may become more of a threat in 2025 if President-elect Donald Trump moves forward with his tariff proposals.

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