FX.co ★ Treasury Yields March Higher

The yield on the U.S. 10-year Treasury note climbed to 4.19% on Friday, marking its highest point in roughly two weeks. This increase was bolstered by robust economic data that highlighted the resilience of the American economy. Reports indicated that industrial production rose by 0.4% last month, surpassing expectations, while retail sales demonstrated ongoing strong consumer spending. Additionally, initial jobless claims pointed to a steadfast labor market, with price pressures linked to tariffs remaining under control. Looking ahead, the upcoming week will bring the PCE inflation report along with GDP figures, which are anticipated to offer more clarity on economic performance. The Federal Reserve is largely expected to maintain the federal funds rate at its forthcoming meeting, with the markets not forecasting a 25-basis-point rate cut until at least June. In international news, tensions with Iran have de-escalated following President Trump's decision to refrain from military action. It should be noted that the U.S. bond market will be closed on Monday in observance of Martin Luther King Jr. Day.