U.S. Treasury yields fell Thursday after weaker-than-expected retail sales data, coming on the heels of a hotter inflation print this week, raised some concern about the strength of the consumer.
The yield on the 10-year Treasury was 2 basis points lower at 4.244%. The 2-year Treasury yield was less than 1 basis point higher at 4.585%.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Investors assessed the January retail sales data, which dropped more than expected. Retail sales tumbled 0.8% last month, more than the 0.3% decline expected by economists polled by Dow Jones.
That comes after the latest consumer price index on Tuesday showed prices rose by more than expected in January, pushing out expectations for interest rate cuts. Federal Reserve officials have in recent weeks indicated that they are looking for more evidence of inflation easing.
However, Chicago Fed President Austan Goolsbee on Wednesday suggested that market participants should not to be too concerned about the CPI reading, saying it was still "totally clear" that inflation was easing. He also said he would not support waiting until the 2% target range for inflation has been met to begin rate cuts.
Elsewhere, data showed that the U.K. economy contracted by 0.3% in the fourth quarter of 2023, pushing the country into a technical recession.
Money Report
— CNBC's Jeff Cox contributed to the report.
