U.S. Treasury yields climbed early on Wednesday morning as investors await a key inflation indicator and assess signs of slowing economic growth.
At around 7 a.m. ET, the yield on the benchmark 10-year Treasury note had increased by roughly 4 basis points to 3.009%, while the yield on the 30-year Treasury bond was up more than 3 basis points at 3.158%. Yields move inversely to prices, and a basis point is equal to 0.01%.
Retail giant Target cut its profit guidance on Tuesday and announced plans to get rid of excess inventory, highlighting the growing risks to economic growth arising from surging inflation.
Meanwhile, a widely tracked Federal Reserve gauge is indicating that the U.S. economy could be on course for a second successive quarter of contraction, a technical recession. The Atlanta Fed’s GDPNow tracker is pointing to an annualized gain in gross domestic product of just 0.9% for the quarter.
Markets are looking ahead to May’s consumer price index reading on Friday, with the print likely to be influential in the scale and speed of the Fed’s monetary tightening path.
