U.S. Treasury yields were little changed Wednesday, as investors looked out for the release of U.S. consumer inflation data later in the day, which could signal the outlook for interest rates. At 7:05 a.m. ET, the yield on the 10-year Treasury was almost flat at 4.358%. The yield on the 2-year Treasury was last at 4.739% after dipping by less than one basis point. Yields and prices move in opposite directions, and one basis point is equivalent to 0.01%. Investors awaited fresh inflation figures, as uncertainty about the path ahead for Federal Reserve monetary policy, specifically for interest rates, has grown in recent weeks. The consumer price index for March is due out on Wednesday, ahead of the producer price index that will be released on Thursday. Economists surveyed by Dow Jones are expecting the CPI to have risen by 0.3% from the previous month and by 3.4% from the previous year. This would be a 0.2 percentage point increase, compared to the February reading of 3.2%. Core CPI, which strips out more volatile food and energy costs, is expected to have hiked by 0.3% on a monthly basis and by 3.7% on the year. Investors are closely watching the data for hints about if and when the Fed will cut interest rates this year, after recent economic reports and comments from policymakers cast doubt over expectations that multiple rate trims will take place in 2024.
Source: CNBC – Bonds
