The U.S. 10-year Treasury dipped on Wednesday as investors awaited a key U.S. inflation report due later in the week.
The yield on the 10-year Treasury slipped more than 2 basis points to 3.808%, while the yield on the 2-year Treasury fell 1 basis point to 3.852%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Market participants are looking ahead to the release of U.S. personal consumption expenditures (PCE) data on Friday to get a better picture on the health of the world’s largest economy. Federal Reserve officials use the PCE measure as their main baseline to gauge inflation.
It comes after Fed Chair Jerome Powell said late last week that “the time has come for policy to adjust,” bolstering expectations for a rate cut at the central bank’s next meeting. Powell declined to provide exact indications on the timing or extent of the cut, however.
“The direction of travel is clear, and the timing and pace of…
