Treasury yields came under pressure on Friday as investors digested disappointing economic data as well as President-elect Joe Biden’s $1.9 trillion economic stimulus plan.
The yield on the benchmark 10-year Treasury note dipped 3 basis points to 1.096% , while the yield on the 30-year Treasury bond fell 4 basis points to 1.838%. Yields move inversely to prices.
The Commerce Department said on Friday retail sales fell 0.7% in December, closing out 2020 on a sour note. Economist surveyed by Dow Jones expecting a decline of 0.1% in December.
Excluding automobiles, gasoline, building materials and food services, retail sales tumbled 1.9% last month after a downwardly revised 1.1% decline in November.
The weaker-than-expected retail sales data following an unexpected jump in weekly jobless claims. Labor Department said Thursday showed first-time unemployment insurance claims in the U.S. surged to 965,000 last week. This was more than Wall Street estimates of 800,000 claims, signaling a further slowdown in the U.S. jobs market due to pandemic public health restrictions.
Yields advanced in the previous session after Federal Reserve Chairman Jerome Powell said that the central bank would not be raising interest rates anytime soon unless there’s unwelcome inflation.
On Thursday evening, Biden outlined the details of his proposed government spending plan, named the American Rescue Plan. It includes extending federal unemployment payments through September and direct payments to many struggling Americans of $1,400.
There are no auctions due on Friday.
