Authorities bond yields proceed to fall on indicators of financial contraction

US Treasury yields fell further on Friday morning after a round of data suggested the economy could be contracting.

The return on the benchmark 10 year treasury note fell 2 basis points to 3.5242%, while the yield on the 30-year government bond slipped around 2 basis points to 3.7339%. Yields move inversely with prices.

Yields fell sharply on Thursday as a fresh round of economic reports pointed to a worse-than-expected economic slowdown. The Philadelphia Fed’s manufacturing index showed a much sharper decline this month than forecast, while last week’s jobless claims rose from the previous week.

Investors continue to weigh the Federal Reserve’s monetary policy stance, with the market pricing in another 25 basis point rate hike at the central bank’s meeting in early May.

Traders will be keeping a close eye on Friday’s S&P Global Flash PMI (Purchasing Managers’ Index), a good indicator of economic health, which is due at 9:45 am ET.

No Treasury auctions are scheduled for Friday.

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