On Wednesday, U.S. Treasury yields increased as investors evaluated the condition of the economy and processed a disappointing auction for the five-year note. The 10-year Treasury yield rose by over two basis points to 4.5639%, remaining above the 4.5% mark it reached Tuesday. The 2-year Treasury yield was also up, by less than one basis point, at 4.9580%.
Fresh economic data, such as the personal consumption expenditures price index due on Friday, which serves as the Fed’s preferred inflation measure, will be closely watched. Several Fed officials are scheduled to make statements during the week, offering investors insight into the future of interest rates.
Investors were anticipating upcoming economic data that could impact Federal Reserve policymaking following a weak Treasury Department auction of $70 billion worth of 5-year notes on Tuesday. The bid-to-cover ratio was below the 2.45 10-auction average, indicating lower than expected demand for treasury bonds.
Minneapolis Fed President Neel Kashkari stated on Tuesday that he would need to see “many more months of positive inflation data” before considering rate cuts
