U.S. Treasury yields grind lower in early Friday's trade, on track to cap a listless week as investors see signs of growing confidence among businesses in the eurozone.
Funds that hold inflation-protected bonds are enjoying their longest streak of inflows in more than a decade, as investors gird themselves for an increase in consumer prices as the US economy recovers. Another $1.2bn flowed into funds that buy US Treasury Inflation-Protected Securities, or Tips, in the week ended Wednesday, according to data provider EPFR — the 29th consecutive week of net inflows. Thecurrent run of inflows is the longest such stretch since the aftermath of the global financial crisis, when Tips funds recorded uninterrupted growth from December 2008 to early 2010.
U.S. Treasury yields fell slightly on Thursday after the European Central Bank left policy unchanged and investors digested signs of an improving labor market.