Treasury yields mixed as Fed calms inflation concerns

Must Read

U.S. Treasury yields were mixed on Wednesday, as Federal Reserve officials restated their dovish views on easy monetary policy and inflation.

The yield on the benchmark 10-year Treasury note rose slightly to 1.567% at 4:20 a.m. ET. The yield on the 30-year Treasury bond fell to 2.256%. Yields move inversely to prices.

San Francisco Fed President Mary Daly told CNBC on Tuesday that while she was encouraged by the improvement in the economy, it was not yet time to change policy.

Meanwhile, Fed Vice Chair Richard Clarida said the central bank would be able to deal with rising inflation without derailing the economic recovery in the U.S.

Fed Vice Chair for Supervision Randal Quarles is due to speak about the economic outlook at the Hutchins Center on Fiscal and Monetary Policy Event, at 3 p.m. ET on Wednesday.

Cole Smead, president and portfolio manager at Smead Capital, told CNBC’s “Squawk Box Europe” on Wednesday that house prices were key for gauging inflation, because they have historically been higher than the consumer price index.

March’s S&P CoreLogic Case-Shiller National Home Price Index, released Tuesday, showed house prices had jumped 13.2% from March 2020.

Smead argued that housing prices gave a “better forward indicator of inputs (and) the cost of labor rising.”

Auctions will be held Wednesday for $35 billion of 119-day bills, $61 billion of 5-year notes and $26 billion of 2-year floating-rate notes.

Latest News

More Articles Like This