Investors await key inflation data
At 5:13 a.m. ET, the 10-year Treasury yield was trading at 3.942% after falling by 4 basis points. The 2-year Treasury was last down by 4 basis points at 4.856%.
U.S. Treasury yields fell on Wednesday as investors awaited inflation data, which could influence the path for Federal Reserve interest rate policy, and remarks from central bank officials.
Investors looked ahead to the release of June's consumer price index report which is slated for Wednesday. They are hoping the data will provide clues about whether the Fed's rate-hiking campaign is taking effect and working to cool the economy and bring inflation back to the 2% target range.
Economists surveyed by Dow Jones are anticipating the CPI to have risen by 0.3% on a monthly basis and 3.1% compared with a year ago. The core CPI, which does not include traditionally more volatile food and energy prices, is expected to have increased by 0.3% from May and 5% on a yearly basis.
The CPI print will be followed on Thursday by the latest wholesale inflation reading.
Fed officials have in recent weeks suggested that the battle against inflation is not yet over and interest rates will therefore likely need to be hiked further to ease pressures from rising prices.
Markets are widely pricing in a rate hike from the central bank at its next meeting later this month, and policymakers have indicated that this may not be the last rate increase of the year, depending on data.
Investors will also be following remarks from Fed speakers, including Richmond Fed President Tom Barkin and Minneapolis Fed President Neel Kashkari for fresh hints about the policy outlook on Thursday.
Source: CNBC
