U.S. Treasury yields ebbed lower early on Wednesday, despite an anticipated rise in inflation, with data due out Thursday morning.
The yield on the benchmark 10-year Treasury note dipped 2.5 basis points to 1.501% at 8:05 a.m. ET. The yield on the 30-year Treasury bond fell 2.9 basis points to 2.18%. Yields move inversely to prices. One basis point is equal to 0.01%.
The consumer price index for May is set to be released Thursday. Economists are expecting the CPI to rise 4.7% from a year earlier, according to Dow Jones. In April, the CPI increased 4.2% on an annual basis, the fastest rise since 2008.
Investors have been watching inflation data closely, with concerns that it could prompt the Federal Reserve to taper asset purchases sooner rather than later, despite the central bank having argued that higher price pressures were temporary.
Job openings in April hit a new record high of 9.3 million, according to the Labor Department’s Job Openings and Labor Turnover Survey released Tuesday. Markets had been expecting 8.18 million job openings, according to FactSet.
Negotiations for a comprehensive infrastructure bill fell apart Tuesday after President Joe Biden and a small group of GOP senators failed to reach a compromise. Biden then spoke with a bipartisan group of senators working on a backup infrastructure plan.
Wholesale inventory data for April is due out at 10 a.m. ET on Wednesday.
Investors will also be keeping an eye on an auction for $38 billion of 10-year notes on Wednesday, as a gauge of demand for government debt. Another auctions is also due to be held Wednesday for $35 billion 119-day bills.
— CNBC’s Yun Li contributed to this market report.
