Treasury Yields Ease as Inflation Report Disappoints Expectations
The Treasury market experienced some relief on Wednesday after an inflation report revealed that prices in the US didn't rise as quickly as economists predicted. The S&P 500 rose by 0.5% and is now close to finishing September with a small gain instead of a loss.
The better-than-expected data helped ease pressure on shorter-term Treasury yields, which had been rising sharply due to concerns about inflation and the Federal Reserve's potential interest rate hike next month.
The yield on the two-year Treasury fell to 4.88% from 4.89% late Tuesday, while the 10-year Treasury yield dropped as low as 5.20% before rising to 5.29%. The 30-year Treasury yield rose to 5.63% from 5.59% late Tuesday.
Stocks also benefited from the news, with Hewlett Packard Enterprise and Nvidia leading the charge after reporting strong earnings and benefiting from lower yields.