Treasury yields edged higher on Wednesday, as investors awaited two key inflation reports that could feed into the Federal Reserve’s looming monetary policy update.
The yield on the benchmark 10-year Treasury was more than 1 basis points higher at 4.087%. The yield on the 30-year Treasury meanwhile jumped more than 2 basis points to trade at 4.738%, and the shorter-maturity 2-year Treasury saw its yield add 1 basis point to hold at 3.552%.
One basis point equals 0.01% and yields, and prices move in opposite directions.
The August producer price index will be published by the Bureau of Labor Statistics later on Wednesday, while the consumer price index will be released on Thursday.
Economists polled by Dow Jones are anticipating a 0.3% monthly increase in both figures, which would lift the annual headline CPI rate to 2.9% — but policymakers at the Fed are also expected to consider the unchanged core inflation reading and a cooling jobs market when they meet next week.
Money markets are overwhelmingly pricing a 25-basis-points rate cut from the Fed’s Federal Open Market Committee, which will convene on Sept. 16 and Sept. 17.