Market information is displayed on monitors as a trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 4, 2024.
U.S. Treasury yields rose on Thursday after the first-quarter GDP report showed slowing growth and rising consumer prices.
The benchmark 10-year Treasury yield climbed 4.8 basis points to 4.702%, while the rate on the 2-year Treasury gained 6.1 basis points to 4.998%. At their session highs, the yields on both notes hit their highest levels since November.
The GDP report showed growth of 1.6%, which was lower than the 2.4% expected by economists surveyed by Dow Jones.
Along with the downbeat growth rate for the quarter, the report showed consumer prices increased at a 3.4% pace, well above the previous quarter's 1.8% advance. This raised concern over persistent inflation and put into question whether the Federal Reserve will be able to cut rates anytime soon, even with the economy slowing.
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The Fed is due to convene for its policy meeting next week. Markets are widely expecting interest rates to remain unchanged then, with traders pricing in the first rate cut for September, according to CME Group's FedWatch Tool.
However, investors will be closely watching for any fresh clues from policymakers about when they expect rates to be cut and how many reductions they expect to take place this year.
