U.S. government debt yields rose on Wednesday despite a government report showed that wholesale inflation rose less than expected in February.
At around 11:49 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 2.618 percent, while the yield on the 30-year Treasury bond was also higher at 3.004 percent.
Treasurys
Yields held higher Wednesday morning even after the Labor Department said that wholesale prices barely increased in February after falling for three straight months.Â
The report, which offered further evidence of little inflation pressure on the U.S. economy, showed that the producer price index gained 0.1 percent in the prior month. Excluding volatile food and energy costs, core producer prices rose 0.1 percent.
The Commerce Department said non-defense durable goods orders posted their largest increase in six months in January, rising 0.8 percent. Overall durable goods orders also rose 0.4 percent while economists polled by Refinitiv expected a decline of 0.5 percent. The data overshadowed a weaker-than-expected print on the producer price index.
On Tuesday, yields slipped after the Labor Department reported that the U.S. Consumer Price Index rose 0.2 percent in February, as expected.
Meanwhile, global investors have been focusing on the fallout from the U.K.'s decision to reject its Brexit deal with the EU. The agreement was rejected Tuesday by 149 votes after 242 MPs voted for the deal and 391 MPs voted against it.
Meanwhile, the Treasury is set to auction $16 billion worth of 30-year bonds on Wednesday.