BOND REPORT: Treasury Yields Edge Lower, But On Track To Log Big Monthly Rise
By William Watts and Mark DeCambre, MarketWatch
Treasurys yields edged lower Friday, but were on track to log a big monthly rise as investors wrestle with prospects for a proposed U.S. tax overhaul and the Federal Reserve's commitment to normalize monetary policy despite signs of sluggish inflation.
What are bond yields doing?
The benchmark 10-year Treasury yield fell 1.4 basis points to 2.295% after hitting an 11-week high earlier in the week. The shorter-dated 2-year note yield traded at 1.447% versus 1.455% Thursday afternoon. Meanwhile, the 30-year bond yield fell 0.9 basis point to 2.861%.
Bond yields move in the opposite direction of prices.
What is moving markets?
The personal-consumption expenditure, or PCE, index, the Federal Reserve's preferred inflation gauge, increased 0.1% in August (http://www.marketwatch.com/story/fewer-auto-sales-dent-consumer-spending-in-august-inflation-still-weak-pce-shows-2017-09-29), while the closely followed core rate, which strips out food and energy, edged up by the same amount. Both measures were flat on a year-over-year basis.
Consumer spending rose just 0.1% in August after a 0.3% rise in July, matching expectations. Personal income climbed 0.2% versus a forecast of 0.1%.