Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Nov. 25, 2025.
Brendan McDermid | Reuters
U.S. Treasury yields ticked higher on Friday as investors digested fresh consumer sentiment data and a tame inflation print.
The 10-year Treasury yield rose more than 3 basis points to 4.151%, while the 2-year Treasury yield was up more than 2 basis points at 3.485%. The 30-year Treasury bond yield increased more than 2 basis points to 4.826%.
One basis point is equal to 0.01%, and yields and prices have an inverse relationship.
The University of Michigan reported Friday that consumer sentiment rose less than expected in December, coming in at 52.9 and marking a climb from the 51.0 November reading. Economists’ consensus estimate called for a result of 53.5, per Dow Jones.
“Year-ahead inflation expectations decreased for the fourth consecutive month to 4.2%,” said Joanne Hsu, Surveys of Consumers director. She added that while this is the lowest reading in 11 months, it’s still above the 3.3% reported in January.
Investors are still weighing up a lighter-than-expected inflation reading from Thursday, after the consumer price index rose at a 2.7% yearly rate in November, Economists polled by Dow Jones expected CPI to have risen 3.1%.
The delayed Bureau of Labor Statistics report also showed that core CPI, which excludes volatile food and energy prices, increased 2.6% yearly, and had been forecasted to increase by 3%.
The downward trend in inflation gave investors some hope that the Federal Reserve will lower rates in 2026. While odds for a January rate cut remain low, traders are pricing in a nearly 56% chance of a March reduction, according to the CME Group’s FedWatch tool. This was up from around 53.9% on Wednesday.
— Fred Imbert contributed to this report