U.S. Treasury yields were mostly lower on Thursday after wholesale inflation in June came in cooler than expected, reducing the likelihood of more aggressive interest rate hikes from the Federal Reserve.The yield on the benchmark 10-year Treasury note
slid by more than 2 basis points to 3.836%, while the yield on the 2-year
fell more than 5 basis points to 4.689%. Yields move inversely to prices.
At the longer end of the curve, the yield on the 30-year Treasury bond
was fractionally lower at 3.945%.
Attention Thursday turned to the producer price index, which showed a weaker-than-expected rise of 0.1%. That follows June’s consumer price index that came in at an annualized 3%, the lowest level since March 2021 and below consensus expectations.
Fed officials have reiterated that the battle against inflation is far from over, and the market is broadly pricing in a quarter-point interest rate hike at the central bank’s next meeting later this READ MORE
