U.S. Treasury yields dipped on Wednesday as investors digested September inflation data.
The yield on the benchmark 10-year Treasury note moved 4.3 basis points lower to 1.537% by 10:28 a.m. ET. The yield on the 30-year Treasury bond fell by 6.2 basis points to 2.042%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Consumer prices increased slightly more than expected in September with the consumer price index for all items rising 0.4% for the month, compared to the 0.3% Dow Jones estimate, the Labor Department reported Wednesday. On a year-over-year basis, prices increased 5.4% vs. the estimate for 5.3%.
However, excluding volatile food and energy prices, the CPI increased 0.2% on the month and 4% year over year, against respective estimates for 0.3% and 4%.
The minutes from the Fed’s September meeting are then set to be released at 2 p.m. ET, with investors searching for more clues as to the central bank’s timeline on paring back its asset purchasing program.
Fed Governor Lael Brainard is scheduled to make a speech at 4:30 p.m. ET, about engaging tribal leaders on financial inclusion and the economic challenges of the pandemic at a roundtable with Oklahoma’s Tribal Leaders.
Fed Governor Michelle Bowman is also set to speak at 8 p.m. ET about making monetary policy and the economic outlook at the Dykhouse Scholar Program Speakers Series in Money, Banking, and Regulation, at South Dakota State University.
Auctions are slated to held on Wednesday for $35 billion of 119-day bills and $25 billion of 30-year bonds.
— CNBC’s Yun Li and Maggie Fitzgerald contributed to this market report.
