U.S. treasury yields cascade before the release of key inflation reports

Wall Street indices

The U.S. government Debt yields slipped in the session as investors braced themselves for the key inflation reports.

The yield on the benchmark 10-year Treasury note slid lower to end the session at 2.837 percent while the yield on the 30-year Treasury bond was still stubborn at 3.122. Bonds yields move inversely while investors continued to watch the latest in the bond market, Concerns over the higher interest rates put pressure to yields.

The Labor Department is scheduled to release its monthly Consumer Price Index data on Wednesday, which the next inflations update for investors. The CPI report will be watched by both traders and the Federal Reserve for any signs of movement in price and in the economy.

Any sight of a rising inflation rate could push yields higher in the markets, which would cause a panic in last week’s big equity sell-off.

Volatile trading is still ongoing across markets all over the world this week, keeping investors on edge. On Monday, the U.S. 10-year treasury yield hit a new four-year high during the trade, while the U.S. stocks finished on a positive note, with the Dow Jones industrial average ending the session gaining more than 400 points in a singles session.

n Monday, President Donald Trump unveiled the U.S.’ latest budget, with the White House calling for $3 trillion in deficit reduction, which would include $1.7 trillion in mandatory spending cuts, while proposing to cut discretionary spending by 2 percent a year after 2019.


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