US Treasury yields continue to rise

US Treasury bond yields have continued to rise since the beginning of daily trading on Wednesday, driven by the fact that investors have fully digested the recent US inflation data, which highlighted that consumer prices in the United States are still on the uptrend.

Yields Are Climbing

US Treasury yields climbed on Wednesday as investors considered the latest inflation data and weighed the state of the economy. The yield on the 10-year Treasury was last 2.5 basis points higher at 4.178%. The 2-year Treasury yield was last at 4.61% after also rising by 1.2 basis points. Yields and prices move in opposite directions and one basis point equals 0.01%.

Markets are also awaiting more economic data that would shed more light on the future path of the Federal Reserve’s monetary policy and whether the US central bank is close to cutting interest rates or rather would likely postpone this step for other upcoming months.

Returns on this type of sovereign bonds rose to 4.194% compared to the last daily close, which recorded 4.160%. The returns on these sovereign bonds fell to their lowest level on the current trading day at 4.134%, compared to the lowest level recorded at 4.200%.

Markets are still awaiting more economic data that would shed more light on the future path of the federal interest rate, most notably retail sales indicators and producer price inflation in the United States.