US Treasury yields slid Friday morning as fears eased about the Federal Reserve’s plan to aggressively hike interest rates and a key inflation reading showed a slowing rise in prices.
Yield on Benchmark 10 year treasury note declined by 1 basis point to 2.743%. yield on 30 Year Treasury Bond fell 2 basis points to 2.972%. The return is the opposite of prices and is equal to 1 basis point 0.01%.
Fed on Friday Preferred inflation metric showed year-on-year growth of 4.9% in April, This result matches expectations and could be a sign that inflation is starting to decline.
UBS Investment Bank chief strategist Bhanu Baweja told CNBC’s “Squawk Box Europe” on Friday that his firm believes inflation has reached its peak and that readings on price hikes may begin to fall.
“In the meantime, we think the US economy is in good shape, no doubt this late cycle but recession is not imminent, and by the way, I don’t think the markets see it as imminent,” Baweja said.
Treasury yields fell mostly this week, as investors sought shelter from heavy selling in stock markets. Disappointing earnings from several technology stocks have fueled fears that the company’s data could reflect a slowdown in economic growth.
The Fed’s plans to aggressively raise interest rates to combat inflation had raised concerns among investors that it would contribute to an economic slowdown.
minutes from May meeting of central bankreleased on Wednesday, showed the Fed saw the need to raise rates quickly and potentially go further than the market expected. However, shares rose on Wednesday afternoon, indicating that investors were largely unfazed by the minutes.
In economic news, personal income rose 0.4% in April. Economists surveyed by the Dow Jones were looking for a 0.5% gain.