US 10-Year Yield Steady Ahead of PPI Report

The yield on the US 10-year Treasury note held above 4.48% on Wednesday, remaining near a five-week high as investors awaited the latest producer price index data for further clues on the inflationary impact of the Trump administration’s tariffs.

Yields climbed on Tuesday after mixed consumer inflation data led traders to scale back expectations for Federal Reserve rate cuts.

Headline inflation matched forecasts on both a monthly and annual basis, while core inflation came in softer than expected.

Adding to the cautious outlook, Dallas Fed President Lorie Logan said the central bank will likely need to keep rates steady for an extended period to ensure inflation remains contained amid tariff-driven price pressures.

Markets are now pricing in reduced odds of multiple rate cuts this year, with the probability of a move in September hovering just above 50%.