Treasury yields decline following upbeat data

US Treasury bond yields decline on Monday from record highs this year after positive batches of US data revived hope that a “soft landing” could be achieved by the Federal Reserve.

The Consumer Confidence Index issued by the University of Michigan rose this January to 78.8 points, compared to the previous reading, which recorded 69.7 points. This was lower than market expectations, which indicated the possibility of a rise to only 70 points, according to data issued last Friday.

Some days before the consumer confidence readings appeared, US retail sales showed an increase last December, which sparked optimism about the future of the economy despite the continued increase in consumer spending in the United States.

Ten-year US Treasury bond yields fell to 4.106%, compared to the last daily close, which recorded 4.131%. Yields on benchmark bonds rose to the highest levels in the first session of the new week’s trading, at 4.154%, compared to the lowest levels, which recorded 4.071%.

The “soft landing” indicates that the US central bank will achieve the inflation target of 2.00% without pushing the US economy down into a recession, which is often a very positive scenario, with its reinforcement by data leading to an improvement in risk appetite.