On Wednesday, U.S. Treasury yields rose as investors assessed the economy and absorbed a lackluster auction for the five-year note. At 4:37 a.m. ET, the 10-year Treasury yield increased by more than two basis points to 4.5639%, remaining above the 4.5% level reached on Tuesday. The 2-year Treasury yield was slightly higher at 4.9580%. Yields on various Treasury securities saw small increases, pointing towards growing investor interest in government debt.
The rise in yields on Tuesday was partly attributed to weak demand at a $70 billion auction of 5-year notes by the Treasury Department. The bid-to-cover ratio, a key measure of demand, came in at 2.3, below the 2.45 average seen in ten previous auctions. Investors were closely monitoring economic indicators throughout the week, including the personal consumption expenditures price index due on Friday, to gain insights into potential Federal Reserve policy moves.
Several Fed officials are scheduled to speak this week, offering valuable insights into the central bank’s thinking on interest rates. Minneapolis Fed President Neel Kashkari indicated that he would like to see sustained inflation data before considering rate cuts. The Fed has emphasized the need for patience in assessing economic conditions and inflation before making any policy changes
