FXStreet (Mumbai) – The benchmark 10-year treasury prices in July witnessed biggest monthly rally note since January. It was also the first monthly gain after March.
The yield on the benchmark 10-year Treasury note fell to 2.207% on Friday from 2.268% on Thursday and 2.335% at the end of June. The Friday’s fall in the yield was triggered by a 0.2% rise in the employment-cost index Friday; the smallest in three decades, pointing to sluggish pay growth. It raised concerns that the labor market strength is not translating into higher pay.
These concerns could be boosted today if the personal spending prints lower than the expected drop tp 0.2% in June from 0.9% in May. The core personal consumption expenditure (Fed’s preferred gauge of inflation) is seen unchanged at 1.2%.
The 10-year yield currently trades at 2.194%; down 1.1 basis points. Meanwhile, the 2-year yield, which tracks interest rate hike expectations, is up almost one basis point at 0.684%.
(Market News Provided by FXstreet)