U.S. Treasury yields plunged Friday as the remnant recession fears and slumping economic data leave investors terrified.
The yield on the benchmark 10-year Treasury note traded 8 basis points lower at 2.889%, near its worse level since late May. Meanwhile, the yield on the 30-year Treasury bond plummeted less than 1 basis point to 3.116%.
The 2-year Treasury rate — which is typically more sensitive to U.S. monetary policy changes — fell 8 basis points to 2.839%. Yields move inversely to prices.
Yields underperformed after the ISM manufacturing index came in at 53, slightly below a Dow Jones estimate of 54.3.
That data followed the government’s report stating that the core personal consumption expenditures price index surged 4.7% in May. That’s 0.2 percentage points below the month before, but still around levels last seen in the 1980s. The index was expected to show a year-over-year increase of 4.8% for May, according to Dow Jones.
The high inflation levels and the Federal Reserve’s continuous efforts to curb the increasing prices have resulted in escalating recession worries.
