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U.S. Feb PPI cooler than expected
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Feb retail sales fall more than expected
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Yields fall, 2s/10s inversion narrows
NEW YORK, March 15 (Reuters) – U.S. Treasury yields fell on Wednesday after U.S. data showed signs of economic weakness and cooling inflation, while the problems of Swiss banking giant Credit Suisse added to concerns about the impact of rising yields on the global banking sector.
The yield on 10-year Treasury notes was down 15.1 basis points to 3.485%.
The yield on the 30-year Treasury bond was down 10.6 basis points to 3.655%.
A closely watched part of the U.S. Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, narrowed to -45.2 basis points.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 29 basis points at 3.935%.
The Commerce Department said on Wednesday that retail sales dropped 0.4% last month. Data for January was revised higher to show retail sales rising 3.2% instead of 3.0% as previously reported. Economists polled by Reuters had forecast sales would fall 0.3%.
The Labor Department’s U.S. Producer Price Index was down 0.1% in February, versus January’s revised 0.3% gain, much cooler than the 0.3% monthly increase expected. (Reporting by Alden Bentley; Editing by Andrea Ricci)