Bond Market Looks to Inflation Data to Back Steeper Yield Curve

From Yahoo Finance: 2025-03-23 15:00:00

Bond investors are shifting towards shorter-term Treasuries as they anticipate slower economic growth and higher inflation. Five-year yields dropped while 30-year bond yields rose, widening the gap. Friday’s data on inflation will be crucial, with expectations of continued elevated levels. This week also sees the final Treasury coupon auctions totaling $183 billion.

Key economic data to watch this week includes personal income and spending, GDP revisions, durable goods orders, and various Fed speakers. The market is closely monitoring inflation metrics, with expectations for it to remain elevated. Bond auctions will also play a significant role in determining market sentiment and yields.

Various Fed officials are scheduled to speak this week, including Atlanta Fed President Raphael Bostic and New York Fed President John Williams. Their remarks could provide insights on future monetary policy decisions. Additionally, a series of bond auctions will take place, offering further opportunities for market participants to gauge demand and pricing trends.

Read more: Bond Market Looks to Inflation Data to Back Steeper Yield Curve