Treasury yields fall as investors await further inflation data
At 5:47 a.m. ET, the 10-year Treasury yield was 3 basis points lower to 4.209%, while the 2-year Treasury yield was down over one basis point at 3.67%. Meanwhile, the 30-year Treasury bond yield declined 2 basis points to 4.799%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors are looking to the next piece of inflation data, the producer price index, which will be published on Thursday morning. The PPI is a measure of wholesale inflation before goods reach consumers.
Dow Jones economists are forecasting the measure of wholesale prices to show a 0.2% rise on the month, after the index came in flat in June.
That comes after the consumer price index came in tamer than expected on Tuesday, which eased concerns that tariffs may be causing prices to increase rapidly.
Traders are now pricing in a near 100% chance that the Federal Reserve will lower rates from the current range of 4.25% to 4.50% at its next monetary policy meeting in September, according to the CME's FedWatch Tool.
The inflation readings come ahead of the Fed's annual gathering of the world's central bankers in Jackson Hole, Wyoming from Aug. 21-23, sponsored by the Kansas City Fed, which will influence future monetary policy decisions.
"Next week the Kansas City Fed are hosting their annual economic policy symposium in Jackson Hole in Wyoming, which has historically often been used for the Fed to signal policy shifts," Deutsche Bank analysts said in a note.
"It was last year that Chair Powell said that the 'time has come for policy to adjust', just weeks before they cut rates for the first time since the pandemic. So all eyes will be on that conference for any fresh signals on the likelihood of rate cuts," they added.
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Yahoo
7 minutes ago
- Yahoo
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7 minutes ago
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