On Wednesday, U.S. Treasury yields fell, with the benchmark 10-year yield down 2 basis points to 5.195% and the 30-year yield down 1 basis point to 5.549%. The 2-year Treasury note yield also decreased by 2 basis points to 4.772%.
This decline in yields comes as investors await the September consumer price index (CPI) report, which is expected to show a monthly increase of 0.6% and an annual rise of 3.6%. These figures indicate that inflation is moving further away from the Federal Reserve's target rate of 2%. Core inflation, which excludes food and energy prices, is projected to rise 0.2% from August and 2.5% annually.
Analysts from Deutsche Bank highlighted that the CPI report is particularly significant as it precedes the Fed's upcoming interest rate decision, suggesting that any unexpected results could influence the Fed's narrative.
Additionally, investors are looking forward to other economic indicators, including the producer price index, retail sales data, and initial jobless claims, all set to be released on Thursday