Home World Treasury yields fall as traders evaluate the data, the Fed’s forecast

Treasury yields fall as traders evaluate the data, the Fed’s forecast

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U.S. Treasury yields were lower on Wednesday as uncertainty over the outlook for monetary policy and the economy, as well as some weak earnings reports from Wall Street, weighed on risk sentiment.

Benchmark yield 10-year Treasury bill fell just over 5 percentage points to 3.4812%, while yields on 30-year treasury bonds down about 4 percentage points to 3.6069%. Profitability moves inversely with prices.

Stocks sold off on Tuesday, with futures pointing to further declines on Wall Street after Goldman Sachs missed profit expectations amid a drop in investment banking and asset management revenue.

Investors will be watching December’s reading of the producer price index, which measures the prices U.S. businesses receive for the goods and services they produce, for further signs of slowing inflation. Wholesale inflation data will be released at 9:30 a.m. ET, along with retail sales figures for December.

There has been uncertainty among traders in recent weeks about whether there will be Federal Reserve System raise rates by 25 or 50 basis points at the next meeting on January 31 and February 1.

Many are concerned that the pace of rate hikes the Federal Reserve has pursued so far in its fight against high inflation could drag the U.S. economy into recession, and hope the central bank can further slow or halt its hiking cycle this year.

Four Federal Reserve officials will speak on Wednesday: Atlanta Fed President Raphael Bostick, Philadelphia Fed President Patrick Harker, St. Louis Fed President Jim Bullard and Dallas Fed President Laurie Logan.

Auctions for $36 billion in 17-week Treasury bills and $12 billion in 20-year notes will be held on Wednesday.

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