He Treasury bond yield The US economy fell to more than five-week lows on Wednesday, after data showed that consumer prices in USA rose less than expected in April, boosting expectations that the Federal Reserve (Fed) lower interest rates this year motivated by the decline in inflation.
He Consumer Price Index (CPI) rose 0.3% last month, after advancing 0.4% in March and February. In the 12 months through April, the CPI rose 3.4% after rising 3.5% in March. Economists consulted by Reuters expected an increase of 0.4% in the month and 3.4% year-on-year.
He Underlying CPIa data closely monitored by the Fed in its control of the inflation, rose 0.3% in April, as expected, after gaining 0.4% in March. In the 12 months to April, the core CPI rose 3.6%. This is the smallest year-on-year increase since April 2021, after the 3.8% increase registered in March.
The benchmark 10-year bond yield fell 7 basis points to 4.377%, after falling to 4.340%, its lowest since April 5. While the return on two-year notes fell 7 basis points, to 4.747%, after declining to 4.711%, also its lowest level since April 5.
The inversion of the yield curve between two- and 10-year papers barely changed on the day, standing at -37 basis points.
Source: Ambito
