investors await key inflation report
U.S. Treasury yields rose on Wednesday as investors awaited the February inflation report and watched developments in the U.S.-Iran war.
At 3:54 a.m. ET, the 10-year Treasury yield rose more than 2 basis points to 4.159%. The 30-year Treasury note also rose 2 basis points to 4.797%. The 2-year Treasury bill yield also increased by 2 basis points to 3.59%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
The February consumer price index report, where investors will examine clues about the health of the US economy, will be published on Wednesday morning. Economists participating in the Dow Jones survey expect the headline CPI to increase by 2.4% on an annual basis.
“This is significant pressure as the recent oil shock has pushed back market expectations for the Fed’s next rate cut,” Deutsche Bank analysts said in a note on Wednesday. he said. “While the Fed is generally expected to keep interest rates steady at next week’s meeting, today’s data will help shape expectations for subsequent decisions.”
Investors continue to monitor the conflict in the Middle East, which sent oil prices soaring to $120 a barrel on Monday.
Prices have fallen since then but remain high.
Other economic data includes housing starts and weekly initial jobless claims on Thursday, and the personal consumption expenditures index on Friday.
