On Friday, U.S. Treasury bond yields decreased slightly as investors analyzed economic data to assess the state of the economy. The 10-year Treasury yield dropped by 2 basis points to 4.2302%, while the 2-year Treasury note yield fell by over 1 basis point to 4.7130%.
Yields and prices have an inverse relationship, with one basis point representing 0.01%. Despite some positive signs from initial jobless claims data, which showed a slight increase from the previous week, housing starts also fell more than anticipated last month. In fact, the number of Americans filing for unemployment benefits decreased by only 5,000 to 238,000 for the week ending June 15, indicating that the labor market is still struggling to recover.
Additionally, a below-expectations reading of the Philadelphia Fed Manufacturing Index added to concerns of a slowing economy. Looking ahead, traders are awaiting manufacturing and services Purchasing Managers’ Index readings for June, as well as existing home sales data for May to gain a better understanding of the current economic situation in the United States.
