Traders work on the American Stock Exchange (AMEX) floor of the New York Stock Exchange (NYSE) on Monday, February 9, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
of 10 years US Treasury Yields rose on Friday as the Supreme Court struck down President Donald Trump’s tariffs and investors monitored the latest economic data.
The yield on the 10-year note rose about 2 basis points to 4.096%. The yield on the 30-year government bond rose about 4 basis points to 4.748%. The yield on two-year bonds rose slightly to 3.472%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The U.S. Supreme Court has struck down many of President Trump’s tariffs. Bond investors are concerned that the loss of tariff revenue could worsen the budget deficit problem and hurt demand for U.S. Treasuries.
Torsten Slok, Apollo’s chief economist, told CNBC that tariffs accounted for about 0.5 percent of the rise in inflation seen last year. The Supreme Court’s decision “makes the job of Kevin Warsh, whom President Trump nominated to replace Fed Chairman Jerome Powell, a lot easier,” Slock said.
“The key implication is that inflation expectations are being revised downward, which makes it much easier for the Fed to cut rates,” Slock said.
economic data
Investors were in a mood to discount the latest economic data showing slowing growth in the final three months of 2025. GDP for the fourth quarter was at an annualized rate of 1.4%, far below the 2.5% growth forecast by economists compiled by Dow Jones.
Aditya Bhave, senior U.S. economist at Bank of America, said on CNBC’s “Squawk Box” that excluding the impact of the government shutdown, “it was 2.5, 2.6. From a GDP standpoint, it’s perfectly fine.”
The latest inflation figures reported on Friday were even harder for markets to overlook.
The median personal consumption expenditure price index, which the Fed recommends as a measure of inflation in the economy, rose to an annual rate of 3% in December, in line with economists’ expectations but still well above the Fed’s annual target of 2%.
“The concern here is prices,” said Bank of America’s Babe. “GDP is fine…If anything, I think people who are worried about inflation will continue to be worried because fiscal stimulus is on the horizon and it’s going to hurt the economy.”
Others on the street agreed with that assessment.
“This data is several months old, but it shows that the Fed’s inflation problem is far from resolved, even if it holds short-term rate cuts in the middle of a Fed leadership change,” said Rick Gardner, investment chief at RGA Investments.
Geopolitically, investors are closely monitoring tensions between the United States and Iran after President Trump said on Thursday that he would decide whether to take military action against Iran in the next 10 days. The U.S. Carrier Strike Group 2, led by Gerald R. Ford, is sailing to join the aircraft carrier USS Abraham Lincoln in the Persian Gulf.
—CNBC’s Pia Singh and Sarah Min contributed to this report
