NEW YORK: US Treasuries yields fell to their lowest in a week on Friday as weaker-than-expected October data on domestic retail sales and producer prices reinforced the view of modest economic growth and tame inflation.
These figures also supported the notion that if the Federal Reserve were to raise interest rates, it would do so gradually.
The Commerce Department said retail sales edged up 0.1 percent last month after being unchanged in September. It fell short of the 0.3 percent increase forecast among analysts polled by Reuters.
At the same time, the Labor Department said producer prices fell 0.4 percent last month, following a 0.5 percent drop in September.
Economists polled by Reuters had projected a 0.2 percent increase.
Benchmark 10-year Treasuries notes were last up 6/32 in price with a yield of 2.294 percent, down over 2 basis points from late on Thursday.