U.S. government bond yields stand pat as traders watch for December inflation report

- Advertisement -


The US Treasury yield was retreating slightly, but mostly held its own on Wednesday morning, as investors awaited a report on consumer inflation that could spark a new bout of volatility in government bond rates.

- Advertisement -

US inflation is on track to close 2021 near its highest level since 1982, as consumer demand and supply-chain problems stemming from the COVID pandemic combined to stock pricing pressures.

What is the produce doing?
What is driving the market?
- Advertisement -

Economists polled by The Wall Street Journal estimate the CPI rose 7.1% in December compared to the same month a year ago, from 6.8% in November. This would mark the fastest pace since 1982 and the third straight month in which inflation exceeded 6%.

On Tuesday, Powell testified before a Senate panel as part of his reaffirmation hearing for a second, four-year term as chairman of the Federal Reserve that supply-chain issues will ease this year and inflation. will help bring it down.

- Advertisement -

A separate inflation reading to measure producer prices has been set at 8:30 am on Thursday.

Beyond inflation report, investors will see $36 billion in 10-year Treasury notes at 1 p.m.

What are strategists saying

“The bond market will have to deal with 10yr and 30yr supply and inflation data of CPI and PPI in the next few days. “We continue to seek higher rates, but believe the 1yr-5yr sector is most vulnerable to higher yields due to four Fed tightening in 2022,” wrote Tom Di Galoma, managing director of Treasury Trading at Seaport Global Securities.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox