U.S. Treasury yields were little changed on Wednesday morning as Wall Street awaited key inflation data due later in the session, according to CNBC.
The yield on the 10-year Treasury note — the benchmark for U.S. government borrowing — was largely flat at 4.682%. The 2-year Treasury yield, which tracks short-term Federal Reserve policy expectations, held at 4.212%, while the 30-year Treasury bond yield was unchanged at 5.231%. One basis point equals 0.01%, and yields and prices move inversely.
CPI in focus
Traders are looking ahead to the July consumer price index report, scheduled for release later Wednesday, with the data expected to play a significant role in the Fed’s September policy meeting. Policymakers are on a break in August, and the central bank has been closely monitoring the impact of elevated price pressures on U.S. consumers — three dissenting votes at the last meeting favored raising rates.
“CPI does set the stage,” said Keith Buchanan, senior portfolio manager at Globalt Investments. “Either it’s as expected and contained or not and we’ll start to see the long end [of the Treasury curve] shift higher.”
Economists polled by Dow Jones expect July CPI to show a 0.1% month-over-month increase, with the annual rate at 3.4%. Core CPI, which excludes food and energy, is projected to rise 0.2% month over month and 2.5% year over year.
ING strategist Padhraic Garvey noted in a Wednesday note that while the move to higher U.S. yields has been linked to the war and higher energy prices, the market’s inflation expectations are relatively relaxed. “The July reading is expected to see core at 2.5% year-on-year,” Garvey wrote. “Break-evens are already below this, paving an auspicious path ahead. The fiscal deficit, though, has been morphing in a more bond-negative direction.”
More data ahead
Investors will also get the July producer price index on Thursday, following a softer-than-expected print last month.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/12/treasury-yields-inflation-cpi-data.html
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