Treasury yields pull back ahead of inflation data

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US Treasury yields eased Wednesday morning, ahead of the release of September inflation data and minutes from the latest Federal Reserve meeting.

The benchmark 10-year Treasury bill yield fell 1 basis point to 1.566% at 4:15 a.m. ET. The yield on 30-year Treasury bills fell 3 basis points to 2.073%. Yields move in the opposite direction of prices and 1 basis point equals 0.01%.

The 10-year rate broke the 1.6% mark on Tuesday morning amid concerns about inflation and tightening monetary policy.

The September Consumer Price Index is due Wednesday at 8:30 a.m. ET. Economists expect an increase of 0.3%, or an annualized inflation rate of 5.3%. Excluding energy and food, the CPI is expected to rise 0.3% month over month or 4% annualized.

The minutes of the September Fed meeting are then expected to be released at 2 p.m. ET, with investors looking for more clues on the central bank’s timetable for scaling back its asset purchase program.

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Fed Governor Lael Brainard is scheduled to speak at 4:30 p.m. ET on tribal chiefs’ engagement on financial inclusion and the economic challenges of the pandemic at a panel discussion with tribal chiefs from the ‘Oklahoma.

Fed Governor Michelle Bowman is also expected to speak at 8 p.m. ET on monetary policy making and the economic outlook at the Dykhouse Scholar program lecture series on money, banking and regulation. , at South Dakota State University.

Auctions are expected to take place on Wednesday for $ 35 billion in 119-day bills and $ 25 billion in 30-year bonds.

CNBC’s Maggie Fitzgerald contributed to this market report.


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