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.
This report’s information was first seen on CNBC; to read more, click this link.
