Treasury Yields Inch Higher as Wall Street Weighs Latest Economic Data, Next Fed Rate Move

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U.S. Treasury yields edged lower Friday as Wall Street parsed through the latest economic data and what it could mean for the Federal Reserve's next rate move.

Bond yields traded close to where they started the week. The yield on the benchmark 10-year Treasury note added 2 basis points to 3.568%, while the yield on the 2-year Treasury bond rose a basis point to 4.182%. Yields move inversely to prices.



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"We really have stayed in some trading ranges, both on bond yields, as well as where the S&P 500 is trading," said Lisa Erickson, a senior vice president at U.S. Bank Wealth Management. "And I think it's really again, just this lack of clarity on what the outlook is for the second half."

Investors on Friday continued to evaluate the likelihood of a greater-than-expected economic slowdown as Philadelphia Fed manufacturing index earlier in the week showed a much greater contraction than forecasted.

Elsewhere, flash PMI readings for services and manufacturing on Friday beat economists' expectations, according to Dow Jones estimates.

Economic data remains a key factor likely to impact the Federal Reserve's next rate move, as the central bank approaches its May policy meeting.

Comments this week from Fed speakers seemed to support the notion of a 25 basis point hike, while also suggesting rates may hover near higher levels for longer. As of Friday, more than 88% of traders are pricing in a 25 basis point hike.

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