U.S. Treasury yields fell on Thursday morning as markets await a first estimate of fourth-quarter economic growth.
At around 2:45 a.m. ET, the yield on the benchmark 10-year Treasury note dropped 2.3 basis points to 4.1549%, while the yield on the 30-year Treasury bond slid 2.7 basis points to 4.3851%.
Yields move inversely to prices.
The U.S. Department of Commerce’s preliminary estimate of fourth-quarter gross domestic product growth, a first look at how the U.S. economy broadly performed at the end of the year, is set for release at 8:30 a.m. ET. December’s durable goods orders are due at the same time.
The GDP figure is expected to show that the U.S. economy expanded at a 2% seasonally adjusted annualized pace, down from 4.9% in the previous quarter and the lowest reading since a 0.6% decline in the second quarter of 2022.
Wall Street will be trying to ascertain what that means for American economic growth in 2024, while the Federal Reserve will be taking the figure into account as it considers its next monetary policy move.
A second major data point is due Friday in the form of December’s personal consumption expenditures price index, the Fed’s preferred inflation gauge.
Auctions will be held Thursday for $90 billion each of 4-week and 8-week Treasury bills, along with $41 billion of 7-year notes.