FXStreet (Mumbai) – The yields on the short duration and long duration Treasury notes in the US inched higher on Monday ahead of the data which could show personal spending slowed down in April.
The yield on the benchmark 10-year yield rose 3 basis points to 2.125%, while the one on the 30-year note rose 4.1 basis points to 2.888%. The two-year yield, which is sensitive to the short-term interest rate expectations, rose 1.2 basis points to 0.617%.
Personal income is seen rising 0.3% on month in April, while spending rose 0.2% after having increased 0.4% in March. Markets would be more interested in core personal expenditure data as well. In the last couple of weeks, the markets have turned optimistic regarding the US economic recovery due to an encouraging core CPI and core durable goods orders report in the US.
On Friday, the yields had dipped even though the second estimate of the US first quarter GDP printed at -0.7%, compared to the consensus estimate of -0.9%.
(Market News Provided by FXstreet)