The 10-year Treasury yield edged lower on Wednesday thanks to new inflation data that may reinforce the case for Federal Reserve rate cuts and government sale of U.S. debt that was met with strong demand.
The yield on the benchmark 10-year Treasury was down more than 3 basis points at 4.042%. The yield on the 30-year Treasury dropped more than 2 basis points to 4.688%. The 2-year yield was flat at 3.542%.
One basis point equals 0.01% and yields and prices move in opposite directions.
The producer price index declined 0.1% in August, the Bureau of Labor Statistics said Wednesday. Economists polled by Dow Jones had expected a 0.3% increase for the month.
Wednesday’s data kept bets high that the Fed will lower its benchmark rate next week. The CME Group’s FedWatch tool based on interest rate futures trading showed a 100% chance of a quarter-point rate reduction in September.
“Overall, it was a softer round of inflation data but not…
