On Wednesday, U.S. Treasury yields rose as investors analyzed the latest economic data and assessed the state of the economy. The 10-year Treasury yield was up more than two basis points at 4.6273%, while the 2-year Treasury yield was up more than three basis points at 4.9414%. Yields and prices move in opposite directions, with each basis point representing 0.01%.
Investors continued to monitor economic data as uncertainty remained about the state of the economy and its potential impact on the Federal Reserve’s monetary policy decisions. Recent data, including the S&P Global Flash manufacturing PMI for the US in April, which hit a four-month low of 49.9, pointed to a contraction in the sector. This led investors to believe that the economy might experience some easing.
Despite concerns about rising interest rates and persistent inflation, recent economic data points to the economy’s resilience. Expectations for the Fed’s upcoming rate cut have shifted, raising questions about whether there will be fewer cuts this year than expected. More economic data will be released during the week, including durable goods orders, the first quarter GDP reading and the personal consumption price index.
Data will be closely watched ahead of the Fed’s upcoming April 30-May 1 meeting. While