Treasury yields fall ahead of fresh consumer inflation figures

U.S. Treasury yields fell on Wednesday as investors considered the impact of inflationary pressures and awaited the latest consumer price index data. At 3:55 a.m. ET, the yield on the 10-year Treasury was down by over two basis points to 4.4238%, remaining below the 4.5% level it briefly crossed on Tuesday. The 2-year Treasury yield decreased by over one basis point. Investors weighed the state of the economy as they analyzed the latest inflation data. The producer price index for April rose 0.5% from the previous month, higher than expected. Federal Reserve Chair Jerome Powell suggested the central bank would need to be patient as inflation has remained at a higher level than anticipated for longer. The consumer price index for April is expected to show a 0.4% monthly growth and a slightly slower annual inflation rate of 3.4% compared to March’s 3.5%. Core CPI, which excludes food and energy prices, is projected to have risen 0.3% from the previous month and 3.6% from a year earlier.