U.S. Treasury yields climbed on Wednesday as investors awaited the release of key economic data and assessed what it could mean for Federal Reserve interest rate policy.
The yield on the 10-year Treasury was up by around 4 basis point at 3.439%. The 2-year Treasury was trading at around 3.932% after rising by about 4 basis points. It had fallen by close to 20 basis points on Tuesday.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Investors assessed the outlook for Federal Reserve interest rate policy as they looked to key economic data due this week.
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Data released Wednesday showed demand for long-lasting goods like appliances and computers was higher than economists polled by Dow Jones expected in March, which can be taken as a sign that the U.S. economy is showing resilience.
Fresh gross domestic product figures are slated for Thursday, while the personal consumption expenditure price index, which is one of the Fed's preferred inflation gauges, is due Friday.
Investors are expecting the Fed to raise interest rates by 25 basis points when it meets next week and will be looking to the central bank's guidance for hints about when rate cuts can be expected. Central bank officials have, however, indicated that rates would likely stay elevated for a while to allow them to take effect and ease inflation.
Money Report
That comes as data — including last week's Philadelphia Fed manufacturing index, which reflected a much bigger than expected decline — sparked concerns about the economy contracting.
