Home Markets Treasury yields retreat ahead of big week of economic data

Treasury yields retreat ahead of big week of economic data

by SuperiorInvest

This comes as markets continue to try to gauge when the Federal Reserve will begin cutting interest rates, which will be a key determinant of the trajectory of the economy and markets this year.

Two important economic data will be released this week: a preliminary fourth-quarter GDP growth figure will be released on Thursday, and the closely watched December PCE Price Index from the Department of Commerce will be released on Friday.

Economists surveyed by Dow Jones expect the economy to have grown 1.7% during the final three months of 2023, the slowest rate since the 0.6% decline recorded in the second quarter of 2022.

The consensus forecast for core PCE prices, which exclude volatile food and energy components, is for 0.2% growth for the month and 3% for the full year.

Chicago Fed President Austan Goolsbee told CNBC on Friday that investors should keep an eye on this data when trying to chart the path of the Fed’s rates.

Auctions will be held Monday for $77 billion in 13-week Treasury bills and $70 billion in 26-week bills.

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