US government bond yields rise ahead of wholesale inflation data
US government bond yields rose on Thursday, September 10, ahead of the release of August wholesale inflation data. The yield on 10-year US Treasury bonds increased by 1.7 basis points to 4.857%, while the two-year yield rose by 1 basis point to 4.436%, CNBC reports.
Yield movements
The yield on 30-year US government bonds rose by more than 2 basis points to 5.307%. One basis point equals 0.01 percentage point. Bond prices and their yields move in opposite directions.
Yields also rose on Wednesday after US Treasury Secretary Scott Bessent said that the department would buy back $6 billion in long-term government bonds. The yield on 10-year securities reached its highest level since November 2023.
Inflation data expectations
Investors are awaiting the release of the US producer price index, which reflects changes in prices for goods and services at the wholesale level. According to the FactSet consensus forecast, the August reading is expected to rise 5.4% year-on-year after increasing 4.7% in the previous report.
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Consumer price data are also due to be released on Friday. Markets are watching both reports to assess the inflation situation ahead of the US Federal Reserve's interest rate decision next week.
Oil prices rise
The resumption of hostilities between the United States and Iran contributed to higher energy prices and heightened inflation concerns. West Texas Intermediate crude futures rose 1.25% to $97.23 per barrel, while Brent increased 0.64% to $101.86.
US President Donald Trump said that energy prices would fall significantly after the midterm elections and that the war in the Middle East would end immediately after the elections.
