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10-year Treasury yield is little changed as traders look ahead to next inflation reading

Traders work on the floor of the New York Stock Exchange on Jan. 10, 2025 in New York City. 
Spencer Platt | Getty Images

Traders work on the floor of the New York Stock Exchange on Jan. 10, 2025 in New York City. 

The yield on the 10-year Treasury was flat Tuesday as traders digest a cooler than expected rise in wholesale prices in December, and looked toward the release of consumer price data.

The 10-year yield was around 2 basis points lower at 4.782% after hitting a fresh 14-month high in the previous session. The 2-year Treasury yield was about 4 basis points lower at 4.363%.

One basis point is equal to 0.01%. Yields and prices move in opposite directions.

The decline yields came amid a lighter-than-expected inflation reading ahead of Wednesday's consumer price index. The producer price index rose 0.2% last month, below the 0.4% estimate from economists polled by Dow Jones, helping temper some fears of fewer rate cuts in 2025.

U.S. bond yields spiked last week, after a hotter-than-expected jobs report fueled expectations for a slow pace of Federal Reserve cuts.

The central bank next meets from Jan. 28-29, where markets have priced in a more than 97% probability of a rate hold, according to CME's FedWatch tool.

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