Treasuries-US bonds fall as markets weigh inflation, Middle East risks
TLT•Yields rise across the curve
In late morning trading, the benchmark 10-year yield rose 3.6 basis points (bps) to 4.694%. U.S. 30-year bond yields were up 3.0 bps at 5.240%. Rising yields mean bond prices are lower.
On the shorter end of the curve, the yield on 2-year notes, which are sensitive to market expectations for Federal Reserve interest rate moves, advanced 3.3 bps to 4.237%.
CPI and PPI in focus for Fed outlook
"Markets are definitely waiting for CPI and PPI," said Tom di Galoma, managing director for global rates trading at Mischler Financial, noting that the inflation numbers were far from disinflationary, and could come in above market forecasts.
The consumer price index (CPI) is forecast to rise 0.1% in July from a 0.4% fall in June, while the year-over-year figure is expected at 3.4% from 3.5% the previous month, according to a Reuters poll. The core CPI forecast was for a 0.1% rise while the year-on-year number was seen at 2.5%.
