U.S. Treasury yields dipped on Wednesday as investors awaited for the latest data on inflation.
The yield on the benchmark 10-year Treasury note fell one basis point to 1.126%, while the yield on the 30-year Treasury bond slipped slightly to 1.867%. Yields move inversely to prices.
December inflation data for the U.S. is due to be released at 8:30 a.m. ET. Economists expect an increase of 0.4% month over month, and 1.3% year over year, according to Dow Jones, Core CPI, less food and energy, is expected to be up 0.1% or 1.6% year over year, versus 0.2% and 1.6% in November.
The rapid move higher in bond yields since the start of the year has been accompanied by rising inflation expectations. Last week, the breakeven rate for 10-year inflation expectations touched 2% for the first time in more than two years.
Meanwhile, political turmoil in the U.S. continues to weigh on investors’ minds, after Vice President Mike Pence said on Tuesday evening that he would not remove President Donald Trump from office.
This was shortly before the House passed a measure calling on Pence and the Cabinet to push Trump out of the White House after he incited last week’s riots in the Capitol.
