Traders work on the floor of the New York Stock Exchange on January 20, 2026.
Michael Nagle | Bloomberg | Getty Images
U.S. Treasury yields fell on Wednesday as traders weighed a tamer-than-expected inflation report.
yield of 10 year treasury The note, a key benchmark for mortgages, auto loans and credit card debt, was 3 basis points lower at 4.555%. yield of 2 years treasury The bond, which typically reacts in line with short-term Federal Reserve interest rate decisions, fell more than 4 basis points to 4.145%.
of 30 year treasury The yield fell less than 1 basis point to 5.09%.
One basis point is equal to 0.01%, or 1/100th of 1%, and yield and price are inversely proportional to each other.
The agricultural product price index fell by 0.3% in June. Economists compiled by Dow Jones expected the index to remain unchanged this month.
“While the Fed’s fight against inflation is by no means over, as Fed Chairman Steve Warsh made clear in yesterday’s testimony, there is good news from the front, factory-level inflation is trending lower, and the likelihood of a Fed rate hike should continue to recede as producers will not pass on higher costs to the consumer level as much as previously thought,” said Chris Rupkey, chief economist at FWDBONDS.
Bond yields fell on Tuesday after the latest consumer price index came in much lower than expected. The CPI index decreased by 0.4% in June, with a year-on-year increase rate of 3.5%. As a result, expectations for a July interest rate hike by the Federal Reserve have declined.
Megan Hsu, chief investment strategist at Wilmington Trust, said core inflation continues to show that while tariff headwinds are waning, higher energy prices are not really transmitting into inflation.
“On the bright side, continued disinflation will allow the Fed to cut interest rates by the end of the year,” Schuh told CNBC’s “Morning Call” on Wednesday.
