10-year Treasury yield climbs back above 1.6% ahead of data

  • September's personal consumption expenditure price index, which is one indicator of inflation, is due out at 8:30 a.m. ET on Friday.
  • Personal income and spending data for September is also expected to come out at 8:30 a.m. ET.

The 10-year U.S. Treasury yield climbed back above 1.6% on Friday morning, ahead of the release of inflation and spending data.

The yield on the benchmark 10-year Treasury note gained more than 3 basis points, rising to 1.6049% at 4 a.m. ET. The yield on the 30-year Treasury bond jumped more than 4 basis points to 2.0076%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

Treasurys

The 10-year rate rose in Thursday's session despite disappointing third-quarter economic growth data. The Commerce Department reported that U.S. gross domestic product had risen 2% in the third quarter versus the previous year, below the 2.8% forecast by economists.

Willem Sels, chief investment officer for global private banking and wealth at HSBC, said on Thursday that his team had expected the GDP number to come in below the consensus forecast.

However, he added that reports of deliveries piling up in U.S. ports because of a shortage of workers and transportation, is a "clear indication that growth is restricted by supply issues, even as demand for most goods is relatively positive."

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Sels believed, therefore, that the economic slowdown would be temporary and the fourth-quarter GDP figure should be stronger.

On Friday, September's personal consumption expenditure price index, which is one indicator of inflation, is due out at 8:30 a.m. ET. Investors will be watching this latest reading closely, given concerns around "stagflation," where inflation rises but the economy slows.

Personal income and spending data for September is also expected to come out at 8:30 a.m. ET.

The University of Michigan's final October consumer sentiment reading is then set to come out at 10 a.m. ET.

There are no auctions scheduled for Friday.

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