U.S. Treasury yields were lower on Wednesday is investors considered the outlook for inflationary pressures and awaited the latest consumer price index data.
At 3:55 a.m. ET, the yield on the 10-year Treasury was down by over two basis points to 4.4238%, remaining below the 4.5% level it briefly crossed on Tuesday. The 2-year Treasury yield was last at 4.8061% after falling by over one basis point.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.387% | +0.033 |
| US3M | U.S. 3 Month Treasury | 5.405% | +0.016 |
| US6M | U.S. 6 Month Treasury | 5.382% | +0.005 |
| US1Y | U.S. 1 Year Treasury | 5.174% | +0.022 |
| US2Y | U.S. 2 Year Treasury | 4.802% | -0.017 |
| US10Y | U.S. 10 Year Treasury | 4.418% | -0.027 |
| US30Y | U.S. 30 Year Treasury | 4.569% | -0.024 |
Investors weighed the state of the economy as they parsed through the latest inflation data.
The producer price index for April, which tracks wholesale prices, came in higher than expected on Tuesday. It rose 0.5% from the previous month, the Labor Department’s Bureau of Labor Statistics reported, higher than the 0.3% increase estimated by economists surveyed by Dow Jones.
Following the PPI release, Federal Reserve Chair Jerome Powell on Tuesday suggested the central bank would need to be patient as inflation has remained at a higher level than anticipated for longer.
This comes ahead of the consumer price index for April which is expected to be released Wednesday. According to Dow Jones estimates, the CPI is expected to grow by 0.4% from the previous month, which would be the same as March’s reading. On an annual basis, inflation is anticipated to slow slightly to 3.4% from 3.5% in March.
Core CPI, which strips out food and energy prices, is expected to have risen 0.3% from the previous month and 3.6% from a year earlier.
Read More:U.S. Treasurys ahead of fresh consumer inflation figures
2024-05-15 08:05:31