investors await key inflation report
U.S. Treasury yields moved higher on Wednesday as investors awaited February’s inflation report and monitored U.S.-Iran war developments.
At 3:54 a.m. ET, the benchmark 10-year Treasury yield rose more than 2 basis points to 4.159%. The 30-year Treasury bond was also up over 2 basis points to 4.797%. The 2-year Treasury note yield also rose 2 basis points to 3.59%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
The consumer price index report for February is set to be released Wednesday morning, which investors will parse for clues about the health of the U.S. economy. Economists polled by Dow Jones expect the headline CPI to have risen 2.4% on a yearly basis.
“This is a key print, as the recent oil shock has pushed back market expectations for the next Fed rate cut,” Deutsche Bank analysts said in a note on Wednesday. “While the Fed is widely expected to hold rates steady at next week’s meeting, today’s data will help shape expectations for subsequent decisions.”
Investors are continuing to keep an eye on the conflict in the Middle East, which caused oil prices to surge to $120 a barrel on Monday.
Prices have eased since, but remain elevated.
Other economic data includes housing starts and weekly initial jobless claims on Thursday, and the personal consumption expenditures index on Friday.
