10-year Treasury yield rises slightly after retail sales top expectations

Long-maturity Treasury yields were slightly higher on Friday after the big beat on retail sales for September.

The yield on the benchmark 10-year Treasury note gained about 1 basis point to 0.741%. The 30-year rate also rose slightly to 1.527%. Yields move inversely to prices.

Consumers spent at a much faster pace than expected in September, with retail sales rising 1.9%. Economists surveyed by Dow Jones expected sales to rise 0.7%, up from a 0.6% rise in August.

Excluding autos, the gain was 1.5%, ahead of the 0.4% expectation. Clothing and accessories led the gains while electronics was the only negative sector.

Lawmakers in Washington continued to send mix signals about progress toward a stimulus deal. Treasury Secretary Steven Mnuchin said Thursday that the White House won’t let differences over funding targets for Covid-19 testing derail stimulus talks with top Democrats.

Later, President Donald Trump said that he would raise his offer for a stimulus package above his current level of $1.8 trillion. House Democrats have passed a $2.2 trillion bill.

However, the IMF’s Managing Director Kristalina Georgieva told CNBC on Thursday that she has “no doubt” the U.S. will implement a new economic stimulus package.    

There will also be a few Fed speeches this Friday: St. Louis Fed President James Bullard will participate in a webinar at 9:35 a.m. ET and New York Fed President John Williams will also address an audience virtually at 9:45 a.m. ET.

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