Yields Edge Higher
Treasury yields climbed on Thursday while market participants waited for U.S. wholesale inflation figures scheduled for later in the day. The 10-year Treasury note yield, the main reference rate for mortgages, auto financing and credit card balances, rose over 2 basis points to 4.8589%. The 2-year yield, generally more attuned to near-term Federal Reserve rate moves, added 1 basis point to reach 4.4404%. The 30-year bond yield, which tends to track wider geopolitical developments, gained more than 2 basis points to 5.3092%. A basis point equals 0.01%, and yields and prices move in opposite directions.[S1]
Inflation Data in Focus
U.S. yields rose on Wednesday after Treasury Secretary Scott Bessent announced the department would repurchase $6 billion in longer-dated government bonds. As the 10-year note yield reached its highest point since November 2023, investors are turning their attention to wholesale and consumer price reports due today and Friday, respectively, seeking a clearer read on U.S. inflation and next week's Federal Reserve rate decision. FactSet consensus estimates point to a 5.4% year-over-year rise in the PPI, which tracks wholesale goods and services, following last month's 4.7% gain. August's consumer price index is scheduled for tomorrow.[S1]
Energy Prices and Geopolitical Tensions
Separately, fresh fighting between the U.S. and Iran kept lifting energy prices, adding to inflation worries. West Texas Intermediate futures were recently up more than 1.3% at $97.37 a barrel early Thursday. President Donald Trump stated that energy prices would fall sharply once the midterm elections are over, and that the Middle East conflict would end right after the vote.[S1]
