Investors await PCE data release and Fed officials’ comments

  • Treasury yields rise ahead of crucial inflation data
  • Yield on 2-year Treasury rises by 3.2 basis points
  • Yield on 10-year Treasury rises by 2.4 basis points
  • Yield on 30-year Treasury rises by 2.5 basis points
  • Investors focus on personal consumption expenditure price index data
  • Expectations that Federal Reserve may not cut borrowing costs until summer
  • Additional U.S. economic data and Fed officials making comments
  • 10-year government bond yield in Japan rises after BOJ member’s comments
  • Range narrows ahead of PCE data

Bond yields rose early Thursday as traders eyed PCE data expected to show inflation picked up last month. The yield on the 2-year Treasury added 3.2 basis points, while the yields on the 10-year and 30-year Treasuries rose by 2.4 and 2.5 basis points respectively. The main focus for investors is the personal consumption expenditure price index data for January, which is expected to show a pick-up in inflation. This data will be closely watched as it is considered the Federal Reserve’s favored inflation gauge. If the data confirms the expected rise in inflation, it may delay any potential interest rate cuts by the central bank. In addition to the PCE data, there are other U.S. economic reports and comments from Fed officials scheduled for Thursday. Meanwhile, the 10-year government bond yield in Japan rose after a Bank of Japan board member hinted at the possibility of exiting the negative interest rate policy. Overall, the range of Treasury yields is narrowing as investors await the release of the PCE data.

Factuality Level: 3
Factuality Justification: The article provides factual information about bond yields and upcoming economic data releases. However, it lacks depth and context, and some statements are presented without proper evidence or sources. The article also includes some unnecessary details and does not critically analyze the information provided.
Noise Level: 3
Noise Justification: The article provides relevant information about bond yields and the upcoming PCE data, along with expert analysis and market predictions. It stays on topic and does not contain irrelevant or misleading information. However, it lacks depth in terms of exploring broader implications or long-term trends, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: Bond markets
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the rise in bond yields as traders anticipate the release of PCE data on inflation. There is no mention of any extreme event or its impact.
Public Companies: S&P Global Ratings (N/A)
Key People: Satyam Panday (Chief U.S. Economist at S&P Global Ratings)

Reported publicly: www.marketwatch.com