Treasury yields fall as investors await consumer inflation data
U.S. Treasury yields fell on Tuesday as investors anticipated the latest consumer price index report and assessed the economic outlook.
At 3:43 a.m. ET, the 10-year Treasury yield was trading at 3.6883% after dipping by around three basis points. The yield on the 2-year Treasury was down by more than two basis points to 4.5074%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
January’s consumer price index report, which reflects how prices for goods and services change, is due to be released Tuesday.
According to a Dow Jones survey, economists are expecting the figures to reflect a 0.4% increase from December. They anticipate core CPI, which excludes prices for food and energy, to have risen by 0.3% on a monthly basis.
The most recent CPI report released in December noted a 0.1% decline, the largest decrease since 2020. Many investors took this as an indication that the Federal Reserve’s efforts to cool the economy and ease inflation were taking effect.
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