U.S. Treasury yields fell slightly on Wednesday as investors considered the latest inflation data and what it could mean for the economy and monetary policy.
At 6:45 a.m. ET, the yield on the 10-year Treasury was down by 2 basis points at 3.833%. The 2-year Treasury yield was last at 3.929% after rising by 1 basis point.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasury yields had tumbled on Tuesday after the producer price index increased 0.1% on a monthly bass in July, less than the forecast 0.2% rise.
The wholesale inflation figure was released ahead of Wednesday’s consumer price index. According to a Dow Jones poll of economists, headline CPI is expected to reflect a 0.2% increase on a monthly basis and 3% on an annual basis.
Core CPI, which strips out food and energy prices, is also anticipated to rise 0.2% from the previous month, and 3.2% from a year earlier.
The data comes as jitters…
