US Treasury yields fell on Wednesday as investors weighed down the latest batch of US inflation data.
The yield on the benchmark 10-year Treasury fell 6 basis points to 2.67%. The 30-year Treasury yield lost 4 basis points to 2.79%. Returns move inversely with prices and one basis point is 0.01%.
The Producer Price Index, which measures the prices paid by wholesalers, rose 11.2% from a year ago, the most in a series of data going back to November 2010. On a monthly basis, the measure is up 1.4%, above the 1.1% Dow Jones. Appreciation.
This batch of data comes on the heels of the March Consumer Price Index, released on Tuesday, which showed inflation came in at 8.5% last month. The reading was just above the expected 8.4% inflation, and represented the largest jump since 1981.
However, there were hopes that core inflation could peak, rising just 0.3% for the month, less than the estimated 0.5%.
Daniel Lacalle, chief economist at Tressis Gestion, told CNBC’s “Squawk Box Europe” on Wednesday that he was surprised to see such a “strong” opening in the markets yesterday.
However, Lacalle noted that market sentiment then began to fade with the realization that “raising interest rates will not be enough to curb the effects of inflation.”
The Russo-Ukrainian War remains in focus, with British intelligence indicating that Russian forces are preparing for what is expected to be a major and more focused push to expand control in eastern Ukraine.
Auctions are scheduled for Wednesday for $30 billion of 119-day notes and $20 billion of 30-year notes.
– CNBC.com employees contributed to this market report.