Treasuries yields edged lower on Wednesday after solid economic growth in the fourth quarter barely budged bonds as investors await key inflation data that could provide new insight into when the Federal Reserve cuts interest rates.
Gross domestic product increased at a 3.2% annualized rate, revised slightly downward from the previously reported 3.3% pace, the Commerce Department’s Bureau of Economic Analysis said in its second estimate of fourth-quarter GDP growth.
Economists polled by Reuters had expected that GDP growth would be unrevised.
The two-year Treasury yield, which reflects interest rate expectations, fell 4.2 basis points to 4.671%, while the yield on the benchmark 10-year note was down 3 basis points at 4.286%.
The market’s initial reaction to the GDP data pushed yields lower due to month-end buying, said Tom di Galoma, managing director and co-head of global rates trading at BTIG in New York.
The market is worried that…
