U.S. Treasury Yields Decline Amid Mixed Economic Signals

U.S. Treasury yields fell as recent economic data confirmed market concerns about inflation, while economic activity showed mixed signals. According to Jin10, U.S. durable goods orders in April increased by 7.9%, significantly surpassing The Wall Street Journal's market consensus of 3.5%. However, this figure was largely influenced by a surge in non-defense aircraft equipment orders. The second estimate of first-quarter GDP growth was unexpectedly revised down from 2% to 1.6%. Weekly initial jobless claims rose more than expected, increasing from a revised 210,000 to 215,000, indicating an acceleration in layoffs. The PCE inflation rate accelerated as expected, rising from 3.5% to 3.8%. Currently, the 10-year U.S. Treasury yield stands at 4.485%, down from 4.508% before the data release, while the 2-year yield fell from 4.070% to 4.045%.