Investors on edge as they anticipate key inflation figures
U.S. Treasury yields remained stable on Friday morning as market participants braced themselves for critical inflation data and assessed the recent developments regarding President Donald Trump’s “reciprocal” tariffs.
As of 4:42 a.m. ET, the yield on the 30-year Treasury bond ticked upward slightly, reaching 4.9305%, while the 10-year Treasury yield increased by a minuscule amount to 4.431%. The 2-year yield remained largely unchanged at 3.946%. It’s important to note that one basis point is equivalent to 0.01%, with yields and prices moving in opposite directions.
The stability in Treasury yields comes amid growing uncertainty surrounding U.S. trade policies. A federal appeals court granted a request from the Trump administration on Thursday to suspend a ruling that annulled the enforcement of reciprocal tariffs on international trading partners that had commenced in April.
Prior to this ruling, the Trump administration indicated it would seek “emergency relief” from the Supreme Court if the court’s decision on the tariffs was not paused by Friday. This uncertainty is contributing to anxiety among investors regarding the potential impacts on the U.S. economy.
Despite the temporary pause, Trump’s officials maintain their commitment to imposing tariffs through alternative methods. “Even if we lose, we will do it another way,” remarked Peter Navarro, a trade advisor to Trump, during a press briefing at the White House.
Looking ahead, investors are keenly awaiting the release of the personal consumption expenditures (PCE) index—an inflation measure closely monitored by the Federal Reserve. This key indicator is scheduled to be unveiled on Friday at 8:30 a.m. ET.