The benchmark 10-year Treasury yield fell Friday
as markets adjusted to the Federal Reserve’s rate hike and turned
their attention to flash PMI (Purchasing Managers’ Index) data for
September to be released later in the day.
The 10-year Treasury bill last traded at 3.6946%, down 1 basis
point from 4:12 am ET. It had hit an 11-year high on Thursday,
rising above 3.71% after gaining nearly 20 basis points.
The policy-sensitive 2-year Treasury continued to hover around
4.1% after rising following the Federal Reserve’s rate hike. By
Thursday, it had risen to 4.163% – a level not seen since October
Yields and prices move in opposite directions. One basis point
corresponds to 0.01%.
September flash PMI data is expected to be
released on Friday, providing markets with preliminary insight into
the economic condition of the manufacturing and services sectors
for the month. PMI data is used as an important indicator of
inflation and recession concerns because it shows whether
industries are growing or shrinking, as well as supply and demand.