U.S. Treasury yields declined on Wednesday as traders looked to key economic data releases due later this week that could provide fresh insights into the state of the U.S. economy.
At 4:37 a.m. ET, the 10-year Treasury was trading at around 3.5687% after falling by around five basis points. The yield on the 2-year Treasury was last down by over three basis points to 4.22%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Investors weighed the outlook for inflation and how it could affect future Federal Reserve monetary policy ahead of the release of December’s consumer price index (CPI) on Thursday.
In recent weeks, Fed officials have suggested that fresh inflation data could affect policy decisions at their next meeting on Jan. 31 and Feb 1. Investors are fretting over whether the central bank will increase interest rates by 25 or 50 basis points then and will therefore be scanning the fresh CPI…
