Treasury yields climb as investors eye key inflation data

Treasury yields climb as investors eye key inflation data

U.S. Treasury yields climbed on Wednesday morning, ahead of the release of key inflation data.

The yield on the benchmark 10-year Treasury note gained more than 2 basis points, rising to 1.4796% at 4 a.m. ET. The yield on the 30-year Treasury bond rose by more than 2 basis point to 1.8519%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

October’s consumer price index is due out at 8:30 a.m. ET on Wednesday.

Economists expect a 0.6% increase, or a year-over-year gain of nearly 6%, which would be the most in 30 years. They expect core CPI, which excludes food and energy and is the Federal Reserve’s preferred measure of inflation, to have risen 0.4%, or 4.3% year-over-year.

The producer price index rose by 0.6% in October from the previous month, which was in line with economist forecasts. Wholesale prices jumped 8.6% in October from a year ago, however, the hottest annual pace on record in almost 11 years.

The data comes as the Federal Reserve has begun talking about normalizing monetary policy, starting with tapering its asset purchases by the end of the month. Investor attention is now turning to when the Fed will look to raise interest rates.

Auctions are due to be held on Wednesday for $10 billion of four-week bills, $25 billion of eight-week bills, $40 billion of 119-day bills and $25 billion of 30-year bonds.

— CNBC’s Tanaya Macheel contributed to this market report.

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