US Treasury Yields Edge Down

The yield on the US 10-year Treasury note edged down to 4.44% on Friday, as investors digested the latest University of Michigan Consumer Sentiment data and comments from a Federal Reserve official.

Consumer sentiment improved in July, and inflation expectations declined for both the short and long term.

Meanwhile, Fed Governor Christopher Waller reiterated his support for a rate cut in July and suggested he may dissent if the Federal Open Market Committee opts to hold rates steady.

Despite his remarks, markets continue to price in no change to the federal funds rate this month, but they still anticipate two quarter-point cuts — likely in September and December.

Earlier in the week, data showed resilient consumer spending through strong retail sales figures, while both core CPI and PPI came in softer than expected.