BOND REPORT: Treasury Yields Hold Ground Ahead Of Inflation Data

By Sunny OhFeaturesDow Jones Newswires

Treasury yields held steady on Friday ahead of a bonanza of key economic data that could set the tone for the rest of the trading session.

How are Treasurys doing?

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The yield for the benchmark 10-year Treasury note was flat at 2.481%, compared with 2.483% on late Thursday. The 2-year note yield was slightly lower at 1.866%, from 1.877%. The 30-year bond yield was down to 2.842%, versus 2.834%.

Bond prices move inversely to yields.

What's driving markets?

As investors approach the end of the year, they'll have to contend with a raft of first-tier economic data set to come out at 8:30 a.m. Eastern. Durable goods orders, a gauge of investment, is expected to notch a 2% gain by economists polled by MarketWatch. Core measures for personal consumption expenditure, the Fed's preferred inflation gauge, are forecasted to rise by 0.1%.

The figures could paint a clearer outlook for fourth-quarter growth and help analysts see whether inflation will perk up from its doldrums anytime soon. Economists are already expecting an impressive finish to the year, after third-quarter GDP was lowered a touch to 3.2%, from 3.3%.

Later, new home sales will be released at 10 a.m., along with consumer sentiment data.

What are market participants saying?

"Better economic growth is pretty reliably associated with higher bond yields, and we've started to get that. But there's still a savings gluts and a shortage of safe assets" that will keep a lid on long-term yields, said Erik Lascelles, chief economist for RBC Global Asset Management.

(END) Dow Jones Newswires

December 22, 2017 08:28 ET (13:28 GMT)