WASHINGTON (dpa-AFX) - Treasuries showed a strong move to the upside during trading on Friday, extending the rally seen over the over the course of the previous session.
Bond prices surged early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.8 basis points to 4.056 percent.
The ten-year yield added to the 6.8 basis point slump seen during Thursday's session, ending the day at a new two-month closing low.
The continued strength among treasuries came following the release of the Labor Department's highly anticipated report on consumer price inflation in the month of January.
The report showed consumer prices rose by slightly less than expected on a monthly basis, while the annual rate of growth slowed by more than anticipated.
The Labor Department said its consumer price index rose by 0.2 percent in January after climbing by 0.3 percent in December. Economists had expected prices to rise by another 0.3 percent.
The annual rate of growth by consumer prices slowed to 2.4 percent in January from 2.7 percent in December, coming in below estimates of 2.5 percent.
Meanwhile, the Labor Department said core consumer prices, which exclude food and energy prices, increased by 0.3 percent in January after rising by 0.2 percent in December, matching expectations.
The annual rate of growth by core consumer prices dipped to 2.5 percent in January from 2.6 percent in December, which was also in line with estimates.
The tamer-than-expected headline inflation data has led to some renewed optimism about the outlook for interest rates and a continued slump by treasury yields.
'This print strengthens the case that the Federal Reserve can maintain a gradual easing bias without fearing renewed inflation pressure,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
She added, 'Importantly, while the labor market remains resilient, today's CPI reduces the risk that strong employment data forces the Fed into a hawkish rethink.'
Nonetheless, the Federal Reserve is still widely expected to leave interest rates unchanged over the next few months before resuming its rates cuts later in the year.
Following the Presidents' Day holiday on Monday, the Commerce Department's report on personal income and spending is likely to be in focus next week, as it includes the Fed's preferred inflation readings.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
