Treasury yields ease back ahead of inflation data and Fed minutes

U.S. Treasury yields eased back on Wednesday morning, ahead of the release of September inflation data and minutes from the latest Federal Reserve meeting.

The yield on the benchmark 10-year Treasury note moved 1 basis point lower to 1.566% at 4:15 a.m. ET. The yield on the 30-year Treasury bond fell by 3 basis points to 2.073%. Yields move inversely to prices and 1 basis point is equal to 0.01%.

The 10-year rate topped the 1.6% mark early on Tuesday, amid concerns about inflation and tighter monetary policy.

September’s consumer price index is due out at 8:30 a.m. ET on Wednesday. Economists expect to see a rise of 0.3%, or a 5.3% annualized rate of inflation. Excluding energy and food, CPI is forecast to be up 0.3% month-over-month or 4% annualized.

The minutes from the Fed’s September meeting are then set to be released at 2 p.m. ET, with investors searching for more clues as to the central bank’s timeline on paring back its asset purchasing program.

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Fed Governor Lael Brainard is scheduled to make a speech at 4:30 p.m. ET, about engaging tribal leaders on financial inclusion and the economic challenges of the pandemic at a roundtable with Oklahoma’s Tribal Leaders.

Fed Governor Michelle Bowman is also set to speak at 8 p.m. ET about making monetary policy and the economic outlook at the Dykhouse Scholar Program Speakers Series in Money, Banking, and Regulation, at South Dakota State University.

Auctions are slated to held on Wednesday for $35 billion of 119-day bills and $25 billion of 30-year bonds.

CNBC’s Maggie Fitzgerald contributed to this market report.


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