US Treasury yields slipped on Thursday, with the benchmark 10-year yield falling over 5 basis points to 4.264%. The 2-year Treasury yield also fell nearly 5 basis points to 3.947%. The producer price index remained unchanged in February, contrary to expectations of a 0.3% month-over-month increase.
The news may have alleviated concerns about the growth of the economy and the impact of US President Donald Trump’s tariffs on inflation. However, questions remain about how the Federal Reserve will proceed with interest rates this year. Experts say the Fed is likely to keep rates low for now.
US trade tensions escalated as President Trump threatened to impose 200% tariffs on all alcoholic products from European countries in retaliation for their 50% tariff on whisky. Treasury Secretary Scott Bessent downplayed the short-term uncertainty, stating that the administration’s focus is on long-term economic health.
The corrected release of the February producer price index report at 8:30 a.m. ET was initially mistaken with an earlier time.
Source: https://www.cnbc.com/2025/03/13/us-treasury-yields-investors-await-ppi-report-.html