The 10-year Treasury yield ticked lower on Wednesday after monthly inflation data came in cooler than expected and U.S. and Chinese officials agreed to a framework on trade. The Treasury Department also sold $39 billion of 10-year notes in the afternoon.
The 10-year Treasury yield dropped 6 basis points to 4.12%. The 2-year yield fell more than 5 basis points to trade at 3.947%. The 30-year yield declined 1.4 basis points to 4.926%.
One basis point equals 0.01%. Yields and prices move inversely in the bond market, meaning higher prices equal lower yields and vice versa.
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WATCH HEREThe Treasury's auction of 10-year notes Wednesday afternoon was "strong," according to BMO with strong participation from non-broker dealers.
These sales have sparked sharp move in Treasury yields in recent weeks, with some viewing them as referendums on Trump's trade and fiscal policies. Important factors to watch include how much primary dealers buy relative to indirect bidders.
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SIGN UP The consumer price index increased 0.1% from April to May, bringing the annual inflation rate to 2.4%. Economists surveyed by Dow Jones had estimated a gain of 0.2% on the month and 2.4% on the year.
Core CPI, which excludes volatile food and energy prices, rose 0.1% from April and 2.8% on an annualized basis. Economists had forecast increases of 0.3% month-over-month and 2.9% year-over-year.
Money Report
Investors also monitored the updates on the U.S.-China trade relationship. As part of the framework outlined by Chinese and U.S. officials, China would approve exports of rare earth minerals, while the U.S. would roll back restrictions on sales of advanced tech goods to China. Commerce Secretary Howard Lutnick said Wednesday that U.S. tariffs on Chinese imports will not change from their current levels.
President Donald Trump said in a Truth Social post earlier Wednesday that the U.S.-China deal was "done," subject to his and Chinese President Xi Jinping's approval. Lutnick earlier said that he and U.S. Trade Representative Jamieson Greer would return to Washington to "make sure President Trump approves" of the deal outline reached in London.
— CNBC's Jeff Cox contributed reporting.
