U.S. Treasuries were flat on Wednesday as investors watched for signals from the White House that talks to resolve the Middle East conflict would resume this week.
yield of 10 years US Treasury Notes, a key measure of government borrowing, were flat at 4.2558%.
of 2 year Treasury bill The yield, which is more sensitive to the Federal Reserve’s short-term interest rate decisions, was unchanged at 3.7572% as of 4:30 a.m. ET. longer date 30 year government bond The yield also fell by more than 1 basis point to 4.8633%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Markets rallied on Tuesday after reports that new negotiations between the US and Iran could be held in Islamabad in the coming days. Investors also continued to scan economic data for signs of inflationary pressures from the conflict.
Treasury yields fell on Tuesday after the most recent producer price index, a key measure of pipeline costs for U.S. final demand goods and services, rose 0.5% in March, according to data from the Bureau of Labor Statistics. This was significantly lower than the Dow Jones consensus estimate of 1.1% for the month.
The Mortgage Bankers Association’s latest average U.S. 30-year fixed mortgage rate will be released later Wednesday. The 30-year fixed rate (for qualifying loan balances) fell to 6.51% for the week ending April 3, down from 6.57% the previous week, a seven-month high.
Other data to be released includes monthly import and export prices for March.
