Treasury yields edge higher as investors await key inflation data
U.S. Treasury yields fell edged higher on Thursday, as Wall Street awaits key inflation data that will shed light on how prices have increased in response to the Iran war.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — rose over 1 basis point to 4.412%.
The 2-year Treasury note yield, which more closely tracks the short-term Federal Reserve interest rate policy, rose by more than 1 basis point to 4.148%. The longer-dated 30-year Treasury bond yield was broadly flat at 4.862%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
On Thursday morning, investors will be watching for May’s personal consumption expenditures price index reading, the Federal Reserve’s preferred inflation gauge.
Economists polled by Dow Jones expect the headline index to rise 0.5% on a monthly basis, slightly higher than April’s 0.4% gain, and 4.1% on a yearly basis, again larger than April’s 3.8%.
Excluding volatile food and energy prices, consensus sees the core PCE gaining 0.3% month-over-month and 3.4% year-over-year. Those estimates are higher than April’s core PCE readings of 0.2% monthly and 3.3% over the prior 12 months.
Oil prices also fell on Thursday, erasing wartime gains as investors bet global crude supplies would improve after tankers that had been stranded in the Persian Gulf for months began leaving the Strait of Hormuz.
— CNBC’s Sean Conlon and Lee Ying Shan also contributed to this report.
