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Treasury yields fall despite expected inflation to skyrocket

Yields on US Treasuries will fall early Wednesday, despite expected inflation surges, with data tracking prices expected to rise late in the morning in April.

Benchmark yield 10-year government bond It dropped to 1.615% at 4 am EST.Yield 30-year government bond It dropped to 2.336%. Yield is inversely proportional to price.

The Dow Jones estimates show that the CPI in April was released at 8:30 am EST, up 0.2% from the previous month and up 3.6% from last year.This jump in the heading CPI It will be the largest since September 2011.

CPI excluding food and energy is expected to rise 0.3% in April and 2.3% in the last 12 months.

According to the Ministry of Labor, the CPI in March rose 0.6% from the previous month and 2.6% from a year ago.

Federal Reserve Board Chair Jerome Powell said rising prices should be temporary, but rising inflation is increasingly a concern for investors.

Jonathan Bell, Chief Investment Officer of Stanhope Capital, said on CNBC’s “Squaw box europe“On Wednesday, the Fed said that much of the expected inflation surge is actually just a’basic effect’. This compares to the low prices seen in the past year in a pandemic.

Bell acknowledged the existence of a fundamental effect, but argued that “still, the underlying inflationary pressures would be there during the summer.”

Meanwhile, Fed Vice-Chair Richard Clarida will speak at the US Business Economist International Symposium at 9 am EST on US economic outlook and monetary policy.

The auction is scheduled to take place on Wednesday, with $ 35 billion of 119-day invoices and $ 41 billion of 10-year bonds auctioned.

— — CNBC’s Maggie Fitzgerald contributed to this market report.

Treasury yields fall despite expected inflation to skyrocket

Source link Treasury yields fall despite expected inflation to skyrocket

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