The 10-year U.S. Treasury note was little changed Thursday as investors awaited a key inflation report on Friday.
The yield on the 10-year Treasury note fell slightly to 3.839%, while the yield on the two-year note rose less than a basis point to 3.873%.
Yields and prices move in opposite directions, and one basis point is equal to 0.01%.
Market participants are eagerly awaiting new economic data, with attention expected to turn to the Federal Reserve’s key inflation indicator on Friday.
The latest U.S. initial jobless claims numbers and second-quarter gross domestic product data are both due to be released around 8:30 a.m. ET on Thursday. Pending home sales for July are also due to be released a little later in the session.
U.S. personal consumption expenditures (PCE) figures are due to be released on the last trading day of August and could provide further clues about the outlook for interest rates. Federal Reserve officials use the PCE measure as their main measure of inflation.
Federal Reserve Chairman Jerome Powell raised hopes of a rate cut at the next Fed meeting last weekend, saying it was “time to adjust policy,” but he declined to provide specifics on the timing or size of any cut.
Market participants are firmly pricing in a rate cut at the Fed’s Sept. 18 meeting. Traders are currently pricing in about a 65.5% chance of a 25 basis point cut next month, and a 34.5% chance of a 50 basis point cut, according to CME Group’s FedWatch tool.
