this U.S. 10-Year Treasury Bond Stocks fell on Wednesday as investors awaited a key U.S. inflation report later this week.
At 5:00 a.m. ET, the 10-year Treasury yield fell one basis point to 3.8273%, while U.S. Treasury yields fell one basis point. 2-Year Treasury Bond It was unchanged at 3.865%.
Yields and prices move in opposite directions. 1 basis point equals 0.01%.
Market participants are looking forward to Friday’s U.S. personal consumption expenditures (PCE) data for a better understanding of the health of the world’s largest economy. Fed officials use the PCE indicator as the main benchmark for measuring inflation.
This comes after Fed Chairman Powell explain Late last week, “the time for policy adjustment has arrived,” boosting expectations for a rate cut at the central bank’s next meeting. However, Powell declined to provide precise information on the timing or magnitude of the rate cut.
“The way forward is clear and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks,” Powell said in a keynote speech at the Fed’s annual retreat in Jackson Hole on Friday.
Market participants firmly expect the Federal Reserve to cut interest rates at its September 18 meeting. Traders currently see a 63.5% chance of a 25 basis point rate cut next month and a 36.5% chance of a 50 basis point rate cut. CME Group’s FedWatch Tool.
—CNBC’s Jeff Cox contributed to this report.
