U.S. Treasury yields were mixed on Wednesday as investors looked ahead to the release of key inflation data that could inform the Federal Reserve’s monetary policy.
At 2:36 a.m. ET, the yield on the 10-year Treasury was down by over one basis point to 4.6428%. The 2-year Treasury yield was last less than one basis point higher at 4.9906%.
Yields and prices have an inverted relationship and one basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.471% | +0.043 |
| US3M | U.S. 3 Month Treasury | 5.527% | +0.031 |
| US6M | U.S. 6 Month Treasury | 5.569% | +0.011 |
| US1Y | U.S. 1 Year Treasury | 5.39% | +0.029 |
| US2Y | U.S. 2 Year Treasury | 4.955% | -0.029 |
| US10Y | U.S. 10 Year Treasury | 4.548% | -0.107 |
| US30Y | U.S. 30 Year Treasury | 4.711% | -0.117 |
Investors awaited the release of the producer price index, which measures wholesale inflation, on Wednesday. Economists surveyed by Dow Jones are expecting the PPI to have risen by 0.3% in September on a monthly basis.
The PPI release will be followed on Thursday by the latest consumer price index reading.
The data could provide hints about the outlook for interest rates as uncertainty about whether the central bank will hike rates further has spread in recent weeks. Though the Fed said after its last meeting that it expected one additional rate increase this year, some policymakers have suggested that may now not be necessary, but officials still appear to have mixed opinions.
Atlanta Fed President Raphael Bostic said Tuesday that he believed rates would not need to be hiked again, adding that monetary policy was restrictive enough to bring inflation back down to the 2% target range.
Meanwhile, Minneapolis Fed President Neel Kashkari left the door open for further rate hikes, saying that rates could be increased further if the economy remains too strong.
Minutes from the last Fed meeting will be released on Wednesday and could also provide fresh insights into the monetary policy outlook.
Elsewhere, investors continued to consider the Israel-Hamas war that prompted many to invest in traditionally safer Treasurys earlier in the week, pushing yields lower.
Barbara Terrio is a seasoned business journalist, delving into the world of finance, startups, and entrepreneurship. With a knack for demystifying complex economic trends, she helps readers navigate the business landscape. Outside of her reporting, Barbara is an advocate for financial literacy and enjoys mentoring aspiring entrepreneurs.
