U.S. Treasury yields were a bit higher Friday on a slightly hotter reading of wholesale inflation, but still headed for a big decline on the week following a drop in the June consumer price index.
The yield on the 10-year Treasury was up by more than 2 basis points to 4.21%. The 10-year yield ended last week at 4.28%.
Meanwhile, the 2-year Treasury yield was last less than 1 basis points higher at 4.498%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.36% | +0.027 |
| US3M | U.S. 3 Month Treasury | 5.341% | -0.002 |
| US6M | U.S. 6 Month Treasury | 5.201% | -0.01 |
| US1Y | U.S. 1 Year Treasury | 4.886% | -0.014 |
| US2Y | U.S. 2 Year Treasury | 4.491% | -0.014 |
| US10Y | U.S. 10 Year Treasury | 4.201% | +0.009 |
| US30Y | U.S. 30 Year Treasury | 4.414% | +0.01 |
The producer price index data released Friday reflected a slightly hotter-than-expected 0.2% increase in wholesale prices in June. Yields remained slightly higher on the report.
Treasury yields had tumbled on Thursday, with the 10-year Treasury yield falling by more than 7 basis points and the and yield on the 2-year Treasury tumbling by over 11 basis points.
That came after the June consumer price index unexpectedly reflected a 0.1% decline from the previous month, and came in at 3% in an annual basis, which was its lowest level in over three years. Economists surveyed by Dow Jones has been expecting the inflation measure to show a 0.1% rise from May and a 3.1% increase from a year earlier.
Core CPI, which excludes food and energy prices, rose 0.1% on a monthly basis and 3.3% from a year earlier. Those increases were also slightly lower than forecast.
Investors have been hoping for data to suggest that inflation is on its way back to the Federal Reserve’s 2% target range, as this could mean interest rate cuts are on the horizon. Expectations for the Fed easing monetary policy as soon as September jumped following the CPI data release, with traders last pricing in an over 90% chance rates being cut then, according to CME Group’s FedWatch tool.
