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U.S. Treasury yields edge higher ahead of CPI and PPI
The 2-year yield rose to 4.394% and the 10-year yield to 4.798% as investors also weighed oil-market shocks after attacks on Saudi facilities.
U.S. Treasury yields rose slightly on Tuesday as traders looked ahead to key inflation reports this week for signals on whether the Federal Reserve is likely to raise rates at its September 15-16 meeting, according to LiveMint Markets citing Reuters.
Markets had increased bets on a September hike after the Labor Department reported that employers added far more jobs than expected in August, but attention is now shifting to the producer and consumer price releases.
The Labor Department is scheduled to publish the Producer Price Index for August on Thursday and the Consumer Price Index for the same month on Friday. The 2-year note yield rose 1.46 basis points to 4.394%, and the 10-year yield gained 1.43 basis points to 4.798%.
Yields were also supported by a rise in oil prices, which hit a six-week high after Iran-backed Houthis in Yemen attacked Saudi energy facilities, setting installations ablaze and raising concerns about the impact on energy supply. Investors also cited Treasury auction demand, including a $58 billion three-year note sale that drew 2.72 times bids and a high yield of 4.474%, while further issuance of $39 billion in 10-year notes and $22 billion in 30-year bonds is set for later in the week.