Traders work on the floor of the New York Stock Exchange on January 20, 2026.
Michael Nagle | Bloomberg | Getty Images
Treasury yields rose on Wednesday ahead of the latest June producer price inflation report due later in the session as investors seek more details on the U.S. economic situation after consumer inflation data came in cooler than expected in the previous session.
Profitability by 10-year Treasuries The note — the main benchmark for mortgages, auto loans and credit card debt — was higher by more than 2 basis points at 4.612%. Profitability by 2-year Treasuries The note, which typically reacts in line with the Federal Reserve’s short-term interest rate decisions, rose more than 2 basis points to 4.217%.
30 year treasury the yield rose more than 2 basis points to 5.123%.
One basis point is equal to 0.01%, or 1/100 of 1%, and yields and prices move inversely to each other.
Traders are awaiting the latest monthly US producer price data due later. Consensus forecasts are for the PPI to remain stable in June, up 1.1% from the previous month. The core figure, which excludes food and energy costs, is expected to jump 0.3%. Previously, it rose by 0.4%.
Bond yields fell during Tuesday’s session after the latest consumer price index came in sharply below expectations. The consumer price index fell 0.4% in June, rising year-on-year to 3.5%. This helped lower expectations of a Fed rate hike in July.
Megan Shue, chief investment strategist at Wilmington Trust, said core inflation continues to indicate that higher energy prices have not had a material impact on inflation while tariff headwinds continue to ease.
“The encouraging thing (we see) is continued deflation, which should allow the Fed to reduce the rate of inflation by the end of the year,” Shu said on CNBC’s “Morning Call” on Wednesday.
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