WASHINGTON (dpa-AFX) - Following the advance seen in the previous session, treasuries moved back to the downside during trading on Friday.
Bond prices came under pressure early in the day and remained firmly negative throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.5 basis points to 4.151 percent.
The pullback by treasuries came as comments from New York Federal Reserve President John Williams party offset the optimism about interest rates generated by yesterday's tamer-than-expected consumer price inflation data.
In an interview on CNBC's 'Squawk Box,' Williams noted that the data were distorted by 'technical factors' that may pushed the reading on consumer price inflation in November lower than it otherwise would have been.
'There were some special factors or practical factors that really are related to the fact that they weren't able to collect data in October and not in the first half of November,' Willams said.
He added, 'And because of that, I think the data were distorted in some of the categories, and that pushed down the CPI reading, probably by a tenth or so.'
On Thursday, the Labor Department said consumer prices in November were up by 2.7 percent compared to the same month a year ago.
The year-over-year price growth in November reflects a notable slowdown from the 3.0 percent surge in September. Economists had expected the annual rate of growth to tick up to 3.1 percent.
The annual rate of growth by core consumer prices, which exclude food and energy prices, also slowed to 2.6 percent in November from 3.0 percent in September. The pace of core price growth was expected to remain unchanged.
The Labor Department noted that survey data for October 2025 was not collected due to the government shutdown.
Williams told CNBC the data may have a downward bias because it was collected mainly in the second half of November, when sales were widespread.
Trading activity may be somewhat next week due to the Christmas Day holiday on Thursday, although reports on durable goods orders, industrial production and consumer confidence may still attract attention.
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