US 10-year Treasury yield holds steady near 4.42 percent amid weak inflation data and Fed rate cut e

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US 10-year Treasury yield holds steady near 4.42 percent amid weak inflation data and Fed rate cut e

NOOR MOHMMED

16/May/2025

The 10-year US Treasury yield held steady around 4.42 percent amid weaker-than-expected inflation and retail sales data in April 2025.
Producer prices fell 0.5 percent in April, defying forecasts, while consumer inflation and retail sales also came in below expectations.
Markets priced in additional Federal Reserve rate cuts this year amid concerns over the US economy and easing trade tensions after US-China tariff reduction.

The yield on the 10-year US Treasury note remained steady around 4.42 percent on Friday, continuing its recent decline as softer-than-expected economic data heightened expectations for a more dovish Federal Reserve policy.

In April 2025, producer prices unexpectedly fell by 0.5 percent, a surprising drop against forecasts that predicted a 0.2 percent increase. Similarly, consumer inflation data also surprised to the downside, signaling slower price rises than anticipated. Alongside inflation figures, retail sales showed lackluster growth, pointing to a weakening in consumer demand, which raised concerns about the overall strength of the US economy.

These disappointing economic indicators have prompted markets to increase expectations for additional Federal Reserve interest rate cuts later this year, reflecting hopes that monetary policy will ease to support growth.

Earlier in the week, US Treasury yields had briefly spiked following an announcement that the US and China would significantly reduce tariffs for 90 days. This temporary tariff relief eased trade tensions between the world’s two largest economies and lowered the risk of a recession. However, uncertainty about the long-term trade relationship and broader economic prospects has continued to weigh on Treasury yields.

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US 10-year Treasury yield holds steady near 4.42 percent amid weak inflation data and Fed rate cut e

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