Treasury Yields move higher as Data comes into Focus

On Tuesday, US government debt prices moved higher and treasury yields lower. Investors got a fresh batch of economic data to mull over.

The yield on the benchmark 10 year Treasury note, which moves inversely to price, fell lower to near 2.215 percent. The longer term yield on the 30 year Treasury bond also moved lower to near 2.884 percent.

Investors got a fresh batch of economic data out of the United States to look over and decide whether or not the Federal Reserve would raise rates in June. Personal income rose 0.4 percent in April. This was in line with expectations. In other data, consumer spending increased by 0.4 percent.

Data does not present Treasury yields with a clear Fed Path

Treasury yields moved lower because, the bottom line was that the only noteworthy fact with yesterday’s data releases was the upward revision, for March, that spending on durable goods was less negative. Also of note was that service spending was more than originally stated.

Looking at April, real spending, for consumers, surprised to the upside. This was off the higher than expected March base. However, the savings rate that remains steady. This points to a consumer that is just trying to just live within their means.

As for other US economic data, released Tuesday, includes the consumer confidence reading for May. Consumer confidence printed at 117.9. This was slightly below the estimate print of 119.