US Treasury yields remained largely steady on Thursday as investors turned their attention to fresh wholesale inflation data expected later in the day, with the figures likely to influence expectations around the Federal Reserve’s next interest-rate decision.
The benchmark 10-year Treasury note yield was broadly unchanged at 4.8407%, while the two-year Treasury yield also held steady at 4.4236%. Meanwhile, the yield on the 30-year Treasury bond edged higher by more than one basis point to 5.2974%, reflecting continued sensitivity in longer-term borrowing costs and market risks.
Investor focus is now firmly on the latest Producer Price Index (PPI), which measures changes in the prices received by producers for goods and services. Economists surveyed by FactSet expect the August PPI to rise 5.4% year-on-year, up from the 4.7% increase recorded in the previous report. The closely watched Consumer Price Index (CPI) report is scheduled for release on Friday.
The latest movement in Treasury yields comes after U.S. yields climbed on Wednesday following Treasury Secretary Scott Bessent’s announcement that the government plans to buy back $6 billion worth of longer-dated debt. The 10-year yield briefly reached its highest level since November 2023, adding to investor concerns over inflation and the future path of interest rates.
Meanwhile, renewed tensions between the United States and Iran have pushed energy prices higher, adding another layer of uncertainty to the inflation outlook. West Texas Intermediate crude futures were up more than 0.2% at about $96.29 a barrel early Thursday. With markets also watching next week’s Federal Reserve meeting, investors are closely assessing inflation, oil prices and economic data for clues about what comes next for U.S. interest rates.
source: cnbc
