Treasury yields rise as traders await key U.S. economic data
U.S. Treasury yields rose on Wednesday as investors awaited the release of fresh economic data to assess the prospects of Federal Reserve rate cuts later this year.
The 10-year Treasury yield climbed 4.6 basis points to 4.644%. The 2-year Treasury yield edged 2.4 basis points higher to 4.929%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.363% | -0.002 |
| US3M | U.S. 3 Month Treasury | 5.389% | -0.002 |
| US6M | U.S. 6 Month Treasury | 5.371% | UNCH |
| US1Y | U.S. 1 Year Treasury | 5.137% | +0.007 |
| US2Y | U.S. 2 Year Treasury | 4.827% | +0.036 |
| US10Y | U.S. 10 Year Treasury | 4.422% | +0.045 |
| US30Y | U.S. 30 Year Treasury | 4.562% | +0.044 |
Investors were focused on this week's economic data releases and their impact on Federal Reserve monetary policy decisions.
On Tuesday, the S&P Global Flash manufacturing PMI for the U.S. came in at a four-month low of 49.9 for April. Readings below 50 indicate that the sector is contracting. The data therefore suggested to investors that the economy may be easing slightly.
The gross domestic product reading for the first quarter is due on Thursday, followed by the personal consumption expenditures price index on Friday. Economists surveyed by Dow Jones expect the economy grew at a 2.4% annualized pace in the first quarter, while consensus Wall Street estimates forecast the PCE inflation rate was 2.6% in March.
The data comes ahead of the Fed's next meeting on April 30 to May 1. The central bank is widely expected to keep rates unchanged, but investors will be watching closely for hints about the path ahead for monetary policy. Fed officials have in recent weeks appeared cautious about a timeline for rate cuts.
Expectations for when interest rates will be cut by the Fed have moved backward in recent weeks and questions have emerged about whether there could be fewer cuts than anticipated this year.