U.S. Treasury yields rose slightly Wednesday morning, after slightly higher-than-expected inflation in the previous session.
The yield on the standard 10-year treasury note climbed to 1,634% at 4:20 ET. The yield on the 30-year Treasury bond rose to 2,314%. Yields move inversely to prices.
The Department of Labor reported on Tuesday that the consumer price index, a key measure of inflation, rose 0.6% in March from the previous month. However, consumer prices rose by 2.6% compared to the same period last year, the highest year-on-year increase since August 2018 and much higher than the 1.7% growth reported in February.
Yields fell after the release of the data, despite market concerns about inflation falling higher over the past few months. Yields were also lower after a strong 30-year bond auction, according to a Reuters report.
Hugh Gimber, world market strategist at JPMorgan Asset Management, told CNBC’s “Squawk Box Europe” on Wednesday that growth and inflation data are now changing from “forecast to fact.”
He said Tuesday’s inflation data was the first of a “wave of very strong data that the Fed intends to continue to hold on to its commitment to checking what a sharp increase over the next few months will be in inflation. “
Gimber therefore believed that there was still room for the treasury’s returns to move further and further.
Federal Reserve Chairman Jerome Powell will discuss the economic recovery from the pandemic on Wednesday at 12 noon at the Economic Club in Washington.
Fed Chairman Richard Clarida will speak at the Shadow Open Market Committee meeting at 3:45 p.m. ET about the new central bank framework and outcomes-based forecasting.
An auction will be held on Wednesday for $ 35 billion worth of 119-day bonds.