Treasury yields increase as inflation expectations rise significantly
- U.S. Treasury yields increased as investors reacted to consumer sentiment data.
- The University of Michigan survey revealed consumer sentiment fell to 57.9 in March.
- Rising inflation expectations could heavily influence the Federal Reserve's monetary policy.
On March 14, 2025, U.S. Treasury yields experienced an increase as investors analyzed recent consumer sentiment data that indicated growing inflation expectations among the public. The benchmark 10-year Treasury yield rose by 3 basis points, reaching 4.306%, while the 2-year Treasury yield climbed 6 basis points to 4.013%. The recent survey from the University of Michigan found that consumer sentiment had notably decreased to 57.9, falling significantly below the Dow Jones consensus estimate of 63.2. The survey highlighted that consumers expected inflation to reach 4.9% over the next year, up from 4.3% the previous month, indicating a concerning trend toward inflationary fears. Director Joanne Hsu of the Surveys of Consumers noted that despite current economic conditions being relatively stable, the future outlook has worsened across various economic facets, including personal finances, labor markets, inflation, business conditions, and stock markets. Consumers conveyed their concerns regarding the uncertainty surrounding economic policies, which complicates their ability to plan for the future. Andrew Brenner from NatAlliance described the latest report as