Yields Tick Up Ahead of Crucial Inflation Data Releases
Treasury yields rose on Thursday as investors waited for crucial wholesale inflation data. The 10-year U.S. Treasury note yield, a key benchmark for borrowing costs, increased by more than 2 basis points to 4.8589%. The 2-year Treasury note yield, typically sensitive to short-term Federal Reserve rate decisions, was up 1 basis point at 4.4404%. Meanwhile, the longer-dated 30-year Treasury bond yield rose more than 2 basis points to 5.3092%.
The move in yields comes ahead of key inflation data releases on Thursday and Friday. Wholesale prices are expected to show a 5.4% year-over-year increase in August, according to FactSet estimates. The August consumer price index will be released on Friday, providing further insight into the U.S. inflation picture.
The uptick in yields also follows Treasury Secretary Scott Bessent's announcement that the department will buy back $6 billion of longer-dated government bonds. Energy prices have been a concern, with West Texas Intermediate futures rising more than 1.3% to $97.37 per barrel on Thursday.