US bond yields fall on economic data, Powell's statements

US bond yields fell on Thursday, following the release of economic data, and as investors weigh the statements of Federal Reserve Chairman Jerome Powell on the future of monetary policy.

The two-year bond yields – the most sensitive to monetary policy changes – fell by 6.5 basis points to 3.986% at 06:04 PM Makkah time. Meanwhile, the 10-year bond yields lost 6.1 basis points to 4.467% and 30-year yields were down almost 4 points to 4.926%.

 Official data released today showed that the Producer Price Index slowed to 2.4% year-on-year in April, from 3.4% in March, below expectations of 2.5%.

For his part, Powell has warned that increased supply shocks and accompanying price rises in the coming years could pose a tough test for the economy and the central bank.