10-Year Closes at 6-Week Low

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The 10-year Treasury yield ended the short trading week at 4.17%, its lowest level since October 18th, after economic data pointed to moderating inflation and softer-than-expected durable goods orders.

  • October’s Personal Consumption Expenditures (PCE) report showed inflation rising 0.3% for the month, in line with economists’ expectations, suggesting price pressures remain steady but not accelerating.
  • Durable goods orders grew by 0.2%, a positive sign but below the 0.5% increase analysts had predicted, hinting at a potential slowdown in manufacturing demand.

Down From The High: The yield on the 10-year note fell 3 basis points on Friday, capping a decline of 28 basis points from the four-month high of 4.45% reached on November 13th.

Bottom Line: With the election uncertainty resolved and signs of a cooling economy, bond yields are finally trending downward.