economy
Treasury yields are little changed after ISM data comes in below expectations
Treasury yields were little changed on Friday as investors assessed the latest report from the Institute for Supply Management.
TL;DR
- Treasury yields were little changed following the release of April's U.S. factory activity data.
- The ISM manufacturing index was 52.7 in April, unchanged from March and slightly below the expected 53.0.
- The 'prices paid' component of the ISM index reached its highest point since April 2022 due to increased energy costs and tariffs.
- The PCE price index rose 0.7% in March, putting the annual inflation rate at 3.5%, exceeding the Federal Reserve's 2% target.
- Core PCE increased 0.3% in March from February and 3.2% year-over-year.
- First-quarter GDP grew at a 2% seasonally adjusted annual pace, down from economists' forecasts of 2.2%.
- The Federal Reserve recently decided to keep its benchmark federal funds rate unchanged between 3.50% to 3.75%.