Bond Report: U.S. Treasury yields slip ahead of retail sales and weekly jobless data

This post was originally published on this site

U.S. Treasury yields slipped early Thursday before a raft of key economic data that could give clues to the health of the consumer who has benefited from direct payments to households by Congress and an accelerating vaccine rollout.

What are Treasurys doing?

The 10-year Treasury note yield
fell to 1.613%, down 2.4 basis points from 1.637% at the end of Wednesday. The 2-year note rate
was steady at 0.161%, while the 30-year bond yield
slid 3.5 basis points to 2.290%.

What’s driving Treasurys?

The highlight of Thursday’s economic data is the retail sales figures for March. MarketWatch-polled analysts are estimating a monthly increase of 6.1%, and a gain of 5.3% after stripping out car sales. The latest weekly jobless benefit claims numbers will also draw attention.

Investors will also see some key data from U.S. factories. The Philadelphia Fed manufacturing index and Empire State manufacturing index will give a regional snapshot of industrial activity. A more comprehensive picture would also come from March’s U.S. industrial production data, due at 9:15 p.m. ET.

In other data, the National Association of Home Builders will release its April housing market index later at 10 a.m.

What did market participants say?

“There is a growing sense that investors are content to move beyond the stimulus inspired surge in consumption and contemplate the next stage of the recovery,” said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets.