Treasury yields fall as investors digest hotter-than-expected CPI data

U.S. Treasury yields fell on Wednesday as investors digested the implications of a hotter-than-expected April inflation reading, which saw consumer prices rise to their highest level in nearly three years.

The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — fell more than 1 basis point to 4.459%.

The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, was over 1 basis point lower at 3.981%. The longer-dated 30-year Treasury bond yield was broadly flat at 5.023%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Non-seasonally adjusted consumer prices rose at an annual rate of 3.8% in April, the fastest since May 2023, and faster than the 3.7% year-over-year inflation expected by economists polled by Dow Jones.

Treasury yields fall as investors digest hotter-than-expected CPI data

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