Treasury prices in the US dropped, pushing the yields higher after the data released on Friday revised Q4 GDP higher, largely in the back of strong personal consumption.
At the time of writing, the 10-yr treasury yield was up 5 basis points at 1.943%. The 2-yr treasury yield, which represents short-term rate hike bets, was up almost 2 basis points at 0.886%.
Following the stronger than expected final Q4 21015 GDP reading (up +1.4%, above expectations for a +1.0% increase) the treasury prices may remain under pressure. Moreover, markets have ignored last week’s weak durable goods print and a rise in weekly jobless claims.
(Market News Provided by FXstreet)