Financial basis

Treasury yields pull back ahead of inflation data


US Treasury yields eased Wednesday morning, ahead of the release of September inflation data and minutes from the latest Federal Reserve meeting.

The benchmark 10-year Treasury bill yield fell 1 basis point to 1.566% at 4:15 a.m. ET. The yield on 30-year Treasury bills fell 3 basis points to 2.073%. Yields move in the opposite direction of prices and 1 basis point equals 0.01%.

The 10-year rate broke the 1.6% mark early Tuesday, amid concerns over inflation and tighter monetary policy.

The September Consumer Price Index is due Wednesday at 8:30 a.m. ET. Economists expect an increase of 0.3%, or an annualized inflation rate of 5.3%. Excluding energy and food, the CPI is expected to rise 0.3% month over month or 4% annualized.

The minutes of the September Fed meeting are then expected to be released at 2 p.m. ET, with investors looking for more clues on the central bank’s timetable for scaling back its asset purchase program.

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Fed Governor Lael Brainard is scheduled to speak at 4:30 p.m. ET on tribal chiefs’ engagement on financial inclusion and the economic challenges of the pandemic at a panel discussion with tribal chiefs from the ‘Oklahoma.

Fed Governor Michelle Bowman is also expected to speak at 8 p.m. ET on monetary policy making and the economic outlook at the Dykhouse Scholar program lecture series on money, banking and regulation. , at South Dakota State University.

Auctions are expected to take place on Wednesday for $ 35 billion in 119-day bills and $ 25 billion in 30-year bonds.

CNBC’s Maggie Fitzgerald contributed to this market report.


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