U.S. Treasury yields were flat Thursday as investors digested Wednesday’s lower-than-expected consumer price index reading for March and awaited wholesale inflation figures.
At 5:41 a.m. ET, the yield on the 10-year Treasury was little changed at 3.426%. The 2-year Treasury was last trading at 3.975%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Investors considered what could be on the horizon for the U.S. economy and Federal Reserve policy as the consumer price index published Wednesday indicated that inflationary pressures could be easing.
Prices climbed by 0.1% on a monthly basis in March and 5% year over year, just below the 0.2% and 5.1% increases economists previously surveyed by Dow Jones had expected.
The latest producer price index, which tracks wholesale inflation, is due Thursday. The PPI had declined by 0.1% on a month-over-month basis in February, but economists are expecting it to be flat in March, according to a Dow Jones survey.
The data is likely to influence the Fed’s next policy moves. After its last meeting, the central bank indicated that, depending on economic data, interest rate hikes may be paused soon. Many investors are, however, expecting a further 25 basis point rate hike at the conclusion of the Fed’s May meeting.
This article was originally published by CNBC.
