Pressure on U.S. Treasurys eases after 30-year yield hits highest level since 2002 - CNBC
U.S. Treasury yields fluctuated following the release of August inflation data that showed a smaller-than-expected increase. Investors are now recalibrating their expectations for future Federal Reserve interest rate hikes.
Why it matters
Bond market movements significantly influence borrowing costs for consumers and businesses, serving as a key indicator of economic health and monetary policy direction.
Treasury yields wavered as traders weighed lighter-than-expected U.S. inflation data for August as they awaited the September jobs report due later in the week.
The 2-year Treasury note yield was last little changed at 4.895%, while the 10-year Treasury yield was more than 4 basis points higher at 5.298%, recovering after a brief pullback earlier in the session. The benchmark yield traded near 2007 highs. The 30-year Treasury bond was up nearly 4 basis points at 5.632%, or around its highest level since 2002.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Consumer prices were reported Wednesday to have posted a smaller-than-expected increase in August compared to the same period a year ago, according to the Federal Reserve's primary measure of inflation.
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