bond

Treasury yields retreat ahead of big week for economic data


The moves come as markets try to gauge when the Federal Reserve will begin cutting interest rates, which will be a key determinant of the trajectory of the economy and markets this year.

Two significant pieces of economic data are on the slate this week, with a preliminary fourth-quarter GDP growth figure due on Thursday and the Commerce Department’s closely-watched PCE price index for December out Friday.

Economists surveyed by Dow Jones expect the economy to have grown by 1.7% for the final three months of 2023, the slowest rate since the 0.6% decline registered in the second quarter of 2022.

The consensus forecast for core PCE prices, which exclude the volatile food and energy components, is 0.2% growth for the month and 3% for the full year.

Chicago Fed President Austan Goolsbee told CNBC on Friday that investors should be watching this data point when trying to plot the Fed’s rate path.

Chicago Fed President Goolsbee: A 'mistake' for the market to hinge on the words of Fed officials



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