U.S. Treasury yields were mixed on Wednesday as investors awaited the release of key inflation data that could influence the Federal Reserve’s monetary policy.
At 2:36 a.m. ET, the yield on the 10-year Treasury note fell more than a basis point to 4.6428%. The two-year Treasury yield was recently less than a basis point higher at 4.9906%.
Yields and prices are inversely related and one basis point is equal to 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | US 1-month Treasury bonds | 5.471% | +0.043 |
| US3M | 3-month US government bonds | 5.527% | +0.031 |
| US6M | 6-month US government bonds | 5.569% | +0.011 |
| US1Y | US government bonds with a maturity of 1 year | 5.39% | +0.029 |
| US2Y | US Treasury bonds with a 2-year maturity | 4.961% | -0.023 |
| US10Y | 10-year US Treasury bonds | 4.564% | -0.091 |
| US30Y | 30-year US Treasury bonds | 4.731% | -0.097 |
Investors awaited the release of the producer price index, which measures wholesale inflation, on Wednesday. Economists surveyed by Dow Jones expect the producer price index to have risen 0.3% on a monthly basis in September.
The PPI release will be followed by the latest consumer price index reading on Thursday.
The data could provide clues about the interest rate outlook as uncertainty has grown in recent weeks over whether the central bank will raise interest rates further. Although the Fed said after its last meeting that it expects another rate hike this year, some policymakers have suggested it may not be necessary now, but officials still appear to have mixed opinions.
Atlanta Fed President Raphael Bostic said Tuesday he believes there is no need to raise interest rates again, adding that monetary policy is tight enough to bring inflation back to the 2% target range.
Meanwhile, Minneapolis Fed President Neel Kashkari left the door open for further rate hikes, saying rates could be raised further if the economy remains too strong.
Minutes from the Fed’s latest meeting will be released on Wednesday and could also provide new insights into the monetary policy outlook.
Elsewhere, investors continued to ponder the war between Israel and Hamas, which prompted many to invest in traditionally safer government bonds earlier in the week, pushing yields lower.