U.S. Treasury yields rose slightly Wednesday morning, following a slightly higher-than-expected inflation reading in the previous session.
The yield on the 10-year benchmark cash note rose 1.634% at 4:20 am ET. The yield on the 30-year Treasury bond rose to 2.314%. Yields are reversed to prices.
The Department of Labor reported on Tuesday that the consumer price index, a basic measure of inflation, rose 0.6% in March from the previous month. However, consumer prices jumped 2.6% over the same period last year, the highest year-on-year gain since August 2018 and well above the 1.7% growth recorded in February.
Yields fell after the data was released, although market concerns about inflation have risen rates in recent months. Yields were also lower after a strong 30-year bond auction, according to a Reuters report.
Hugh Gimber, global market strategist at JPMorgan Asset Management, told CNBC’s “Squawk Box Europe” on Wednesday that growth and inflation data were now changing from “one-fact forecasts.”
He said Tuesday’s inflation data was the first of a “very strong data wave that will continually test the Fed’s decision to meet its commitment to revise what a sharp rise in inflation will mean during the next months “.
Gimber, therefore, believed that there was still room for Treasury yields to continue to advance.
Federal Reserve Chairman Jerome Powell will discuss the economic recovery from the pandemic Wednesday at 12 noon (ET) Wednesday at the Washington Economic Club.
Fed Chairman Richard Clarida plans to talk about the new central bank framework and future results-based guidelines at 3:45 p.m. ET at the Shadow Open Market Committee meeting.
A $ 35 billion 119-day bond auction will be held on Wednesday.