Treasury yields retreat after data hints at slowing economy


U.S. Treasury bond yields were slightly down on Friday as investors pondered the latest economic data for signs of a slowing economy.

The 10-year Treasury yield was 2 basis points lower at 4.2302%. The 2-year Treasury note yield was down over 1 basis point at 4.7130%.

Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.

Initial jobless claims data showed an increase from a week ago, while housing starts fell more than expected last month.

The number of Americans filing new claims for unemployment benefits dropped by 5,000 to 238,000 for the week ended June 15. Economists polled by Reuters had forecast 235,000 claims for that period.

Housing starts, a key metric for real estate investors, were down 5.5% to a seasonally adjusted annual rate of 1.277 million units in May, according to a report from the Commerce Department’s Census Bureau. Investors also considered a worse-than-expected reading of the Philadelphia Fed Manufacturing Index, contributing to recent signs of a slowing economy.

Traders on Friday will be looking ahead to manufacturing and services Purchasing Managers’ Index readings for June. Existing home sales data for May is also due for release.



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