US Treasury yields remained mixed on Friday as investors continued to assess the risk of an economic slowdown.
Yield on Benchmark 10 year treasury note was trading marginally lower at 2.972%, narrowing losses after falling 2.941% earlier in the session – its lowest level since June 6. Meanwhile, yield 30 Year Treasury Bond rose 3 basis points to 3.158%.
2 year treasury rate, which is generally more sensitive to US monetary policy changes, was down about 2 basis points at 2.912%. The 2-year note reversed some of its losses after falling to a one-week low of 2.895%. Yields move inversely to prices.
S&P 500 on Thursday closed its worst first half in decades, The broader market index dropped 20.6% for the biggest fall in the first half since 1970.
The heavy losses in the first half have come at a time when market participants are battling rising inflation and tight monetary policy.
Key Personal Consumption Expenditure Price Index, the Fed’s preferred inflation measure, up 4.7 percent in MayThe Commerce Department reported on Thursday. This is 0.2 percentage points lower than a month ago, but still around the levels seen in the 1980s. According to the Dow Jones, the index for May was expected to show a year-on-year increase of 4.8%.
Recession concerns have increased as a result of the Federal Reserve’s efforts to deal with stubbornly high inflation levels and rising prices.
On the data front, the final reading of the S&P Global Manufacturing Purchasing Managers’ Index for June will be released at 9:45 a.m. ET.
Institute for Supply Management Manufacturing data for June, construction expenses for May and light vehicle sales for June will all be released at 10 a.m. ET.
— CNBC’s Fred Imbert and Tanya Machel contributed to this report.