Treasury yields dropped on Wednesday after the inflation report in June showed an easing in prices.
The 2-year Treasury slid by 15 basis points to 4.742%. The 10-year Treasury yield fell by more than 12 basis points to 3.857%. Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
The consumer price index increased 3% from a year ago, which is the lowest level since March 2021. On a monthly basis, the index, which measures a broad swath of prices for goods and services, rose 0.2%. That compared to Dow Jones estimates for respective increases of 3.1% and 0.3%.
Fed officials have in recent weeks suggested that the battle against inflation is not yet over and interest rates will therefore likely need to be hiked further to ease pressures from rising prices.
Markets are widely pricing in a rate hike from the central bank at its next meeting later this month, and policymakers have indicated that this may not be the last rate increase of the year, depending on data.
Investors will also be following remarks from Fed speakers, including Richmond Fed President Tom Barkin and Minneapolis Fed President Neel Kashkari for fresh hints about the policy outlook on Thursday. Â