Treasury Yields Decline Ahead of Key Economic Data

U.S. Treasury yields fell on Thursday as investors awaited crucial economic data. The 10-year Treasury yield dropped over five basis points to 4.2349%, while the 2-year yield fell to 4.3585%.

On Wednesday, data showed the U.S. PMI flash manufacturing output index for July fell to 49.5, below the expected 51.5, indicating a contraction.

Investors are focusing on upcoming data, including durable goods orders, weekly jobless claims, and a preliminary Q2 GDP reading, as well as key inflation figures due Friday via the personal consumption expenditures price index. This is the Fed’s preferred inflation measure and could impact future monetary policy decisions.

Markets expect interest rates to remain unchanged in the upcoming Fed meeting but are looking for clues about future rate cuts.