10-year Treasury yield edges higher ahead of inflation data

10-year Treasury yield edges higher ahead of inflation data

Via CNBC.com:

The 10-year U.S. Treasury yield edged higher early on Friday, ahead of the release of inflation data later in the morning.

The yield on the benchmark 10-year Treasury note rose slightly to 1.489% at 3:15 a.m. ET. The yield on the 30-year Treasury bond dipped slightly to 2.093%. Yields move inversely to prices.

The Commerce Department is set to release May’s core personal consumption expenditures (PCE) index at 8:30 a.m. ET. Economists polled by Dow Jones expected prices rose 3.4% in May from a year earlier. Economists also estimate prices increased by 0.6% from April to May.

The PCE index reflects the changes in the prices of goods and services. It is also generally considered a wider-ranging measure for inflation as it captures changes in consumer behavior and has a broader scope than the Labor Department’s consumer price index.

The University of Michigan is due to release its June consumer sentiment and inflation expectations data at 10 a.m. ET.

Meanwhile, President Joe Biden announced Thursday that the White House had struck an infrastructure deal with a bipartisan group of senators. The lawmakers have worked for weeks to craft a roughly $1 trillion package that could get through Congress with support from both parties. The framework will include $579 billion in new spending on transportation like roads, bridges and rail, electric vehicle infrastructure and electric transit, among other things.

Stephen Isaacs, investment committee chairman at Alvine Capital, told CNBC’s “Squawk Box Europe” that he was currently more focused on central bank policy as a market driver, particularly as Federal Reserve Chairman Jerome Powell’s term comes to an end in January.

Isaacs said he was “pretty confident” that the “least controversial” and consensus choice would be to re-nominate Powell. He explained that presidents tend to signal their nomination in August or September.

Ahead of this, Isaacs believed central bank policy would remain “quite muted,” but once there was an indication that Powell would be re-nominated, he said the “fireworks will come.”

There are no auctions scheduled to be held on Friday.