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U.S. Treasury yields were lower on Wednesday as investors digested the latest inflation data and considered the impact of tariffs on the U.S. economy.
The 10-year Treasury yield was down 6 basis points to 4.231%, while the 2-year Treasury yield was 5 basis points lower at 3.681%. The 30-year Treasury bond yield also lost 6 basis points to 4.821%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors were relieved after July’s inflation reading came in tamer than expected, calming fears that tariffs are not causing prices to accelerate. Traders are now pricing in a nearly 96% chance of a rate cut at the Federal Reserve’s September meeting, according to CME’s FedWatch Tool.






