Saturday, May 18, 2024
HomeTrading RoomAs Investors Await Consumer Inflation Statistics, Treasury Yields Decline

As Investors Await Consumer Inflation Statistics, Treasury Yields Decline

As investors awaited the most recent consumer price index report and evaluated the economic outlook, U.S. Treasury yields decreased on Tuesday.

The 10-year Treasury yield fell by about 2 basis points to trade at 3.369% at 5:52 a.m. ET. The 2-year Treasury’s yield

was down almost 2 basis points at 4.509% as well.

Prices and yields are inversely correlated. 0.01% is one basis point.

Tuesday will see the release of the consumer price index report for January, which shows how prices for goods and services vary.

An increase of 0.4% from December is anticipated in the data, according to a Dow Jones survey of experts. They predict that core CPI, which does not include food or energy prices, will have increased by 0.3% on a monthly basis.

The most current CPI report, which was published in December, showed a 0.1% loss, which was the biggest drop since 2020. This was interpreted by many investors as proof that the Federal Reserve’s efforts to slow the economy and reduce inflation were working.

Since March 2022, eight interest rate increases have been part of these efforts. Concerns about the rate of rate increases and the possibility of rates remaining stable have plagued many investors they will remain elevated for longer out of concern that the U.S. economy will weaken.

Future rate decisions will be based on economic data, according to a number of Fed officials. Investors will be watching central bank officials’ speech on Tuesday for any new cues regarding the Fed’s monetary policy and outlook for the economy.

Source (CNBC)

- Advertisment -

Most Popular

Recent Comments