U.S. Treasury yields on Friday mostly held their ground to close out the week and month as investors were watching for the Federal Reserve’s preferred measure of inflation, the personal-consumption expenditure index due at 8:30 a.m. Eastern Time.
How Treasurys are performing Fixed-income market drivers Bond markets continue to be tightly wound around the themes of inflation expectations and the Federal Reserve’s reaction to price pressures, and an anticipated increase in debt issuance as the Biden administration pushes an ambitious $6 trillion budget proposal for the 2022 fiscal year.
Economists’ surveyed by Dow Jones are forecasting that the core price index for PCE, rose 0.6% in April from a month earlier and rose 2.9% over the prior 12 months. Meanwhile, Treasury markets saw some selling pressure on Thursday, amid reports of President Joe Biden’s $6 trilion budget proposal, which implies greater debt issuance, which would put pressure on the bond market.
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