Treasury yields rise after inflation data

US Treasury yields continued to rise since the beginning of daily trading on Thursday, with a boost from inflation readings that highlighted the continued rise in consumer prices in the United States.

The reading of the Personal Consumption Expenditures Price Index (QoQ)(Q1), which is one of the links in a series of indicators bearing that name and which the Federal Reserve considers the most reliable and reliable in measuring inflation in the United States, rose by 3.4% in the first quarter of 2024, compared to the previous reading, which recorded 1.8%.

This means that US inflation is still rising, holding at levels far from the official price target set by the Federal Reserve, which may discourage the central bank from cutting rates any time soon.

There is a strong direct relationship between US bond yields and inflation rates, which led to a rise in these yields after the appearance of readings on Thursday that shed light on the continued rise in inflation in the United States.

Ten-year US government bond yields rose to 4.711% compared to the last daily close, which recorded 4.646%. Returns fell to their lowest level on the trading day, Thursday, at 4.642%, compared to the highest level, which was recorded at 4.741%.