Treasury Yields Rise Despite Signs of Cooling Economy

Treasury yields rise and erase most of past week’s loses even as fresh data point to a slowing economy and potentially less hawkish monetary policy. The 10-year is at 3.578% and the two-year at 4.163%. Most of the upswing happens after weekly jobless claims rise to 198K from 191K and versus consensus of 195K, while 4Q GDP growth is revised down to 2.6% from 2.7%. The 4Q PCE index was unchanged at 3.7% and quarterly personal consumption was revised down to 1% from 1.4%. “There are signs of consumer stress ahead,” Spartan’s Peter Cardillo tells WSJ.