Treasury yields rise after consumer inflation sentiment darkens [Video]

U.S. Treasury yields were higher Friday as consumer sentiment toward future inflation worsened and as the January jobs report showed higher-than-expected wage growth that might pressure prices.

The 10-year Treasury yield rose five basis points to 4.495%. The 2-year Treasury yield was last at 4.281% after rising seven basis points. Yields and prices move in opposite directions, and one basis point equals 0.01%.

Consumers grew dramatically more worried about near-term inflation as President Donald Trump pushed aggressive tariffs against major U.S. trading partners, a closely watched survey showed Friday.

The University of Michigan consumer survey for February showed that respondents expect the inflation rate a year from now to be 4.3%, a 1 percentage-point jump from January and the highest level since November 2023.

“Expect yields to drift higher as investors digest the details,” said Bryce Doty, senior portfolio manager at Sit Investment Associates. 

Meanwhile, the January nonfarm payrolls report showed average hourly earnings were also stronger than expected, rising 0.5% …