On Wednesday, U.S. Treasury yields rose as investors evaluated the current state of the economy and reacted to a lackluster auction of five-year notes. The yield on the 10-year Treasury increased by more than two basis points to 4.5639%, remaining above the 4.5% level it surpassed on Tuesday. Meanwhile, the 2-year Treasury yield was slightly higher at 4.9580%.
On Tuesday, yields had climbed following a $70 billion auction of 5-year notes by the Treasury Department, which saw weaker demand than expected. The bid-to-cover ratio was 2.3, below the 10-auction average of 2.45. Investors were also monitoring upcoming economic data releases that could impact Federal Reserve decision-making.
The personal consumption expenditures price index, due on Friday, is a key inflation measure for the Fed. Additionally, several Fed officials were scheduled to speak during the week, providing insight into future interest rate policies. Minutes from the previous Fed meeting revealed uncertainty around the potential for rate cuts in the future.
Minneapolis Fed President Neel Kashkari noted on Tuesday that he would require more positive inflation data over the coming months before considering rate cuts
