Treasury yields declined on Wednesday as investors considered what could be next for economies and monetary policy around the world and awaited fresh data from the U.S. housing sector.
The 10-year Treasury yield was down by 5 basis points at 3.740%. The yield on the 2-year Treasury was last trading less than one basis point lower at 4.749%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
Investors assessed the global economic outlook especially regarding inflation and how it may affect monetary policy after several countries posted their latest inflation figures.
Inflation fell to 7.9% in the U.K. in June, lower than the expected 8.2%, prompting markets to reconsider whether the Bank of England will announce a second consecutive 50 basis point rate hike. The central bank had increased rates for the 13th time in a row last month and surprised with the size of the hike, which markets had expected to be a 25 basis point increase. It will next meet on Aug. 3.
Elsewhere, New Zealand's consumer price index increased by 6% on an annual basis, making this the second consecutive quarter that has shown a slowdown in inflation.
That comes before the Federal Reserve is due to meet and make fresh policy decisions on July 25-26. Markets are widely pricing in an interest rate hike to be announced then as policymakers have suggested they believe further tightening is necessary to sufficiently ease inflation.
The U.S. consumer price index published last week came in lower than previously expected at 3%, suggesting that monetary policy measures taken so far are having the desired effect.