Feb 13, 2025
US Treasury bonds experienced a rally following a key report on producer prices, suggesting that the recent selloff triggered by hot consumer inflation data may have been overdone. According to Bloomberg, the advance reduced some yields by nearly 10 basis points, effectively erasing most of the previous day’s surge.
The market’s recovery has proven favorable for investors who participated in Wednesday’s auction of 10-year Treasury notes, and it has subsequently lowered the projected yield for the upcoming auction of 30-year bonds at 1 p.m. New York time. Despite President Trump’s administration’s announcement of plans for reciprocal tariffs on trading partners, which might complicate the auction, reports from CNBC indicated that these tariffs would not be enacted immediately.
JPMorgan Chase & Co. interest-rate strategists had already advised investors to purchase two-year Treasury notes,…
