U.S Treasury yields were mixed on Wednesday as investors assessed what could be next for the economy amid concerns about the debt ceiling and a recession.
At 4:27 a.m. ET, the yield on the 10-year Treasury was down by close to two basis point to 3.5301%. Meanwhile, the 2-year Treasury yield was last trading over one basis point higher at 4.0886%.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.824% | +0.271 | 0.00% |
| US3M | U.S. 3 Month Treasury | 5.263% | +0.044 | 0.00% |
| US6M | U.S. 6 Month Treasury | 5.271% | +0.04 | 0.00% |
| US1Y | U.S. 1 Year Treasury | 4.885% | +0.009 | 0.00% |
| US2Y | U.S. 2 Year Treasury | 4.087% | +0.013 | 0.00% |
| US10Y | U.S. 10 Year Treasury | 3.524% | -0.025 | 0.00% |
| US30Y | U.S. 30 Year Treasury | 3.84% | -0.033 | 0.00% |
Investors fretted over the state of the U.S. economy as negotiations about raising the debt ceiling continued, with participants last saying progress was being made. A solution must be found before June 1, or lawmakers risk the U.S. defaulting on its debt obligations.
Elsewhere, investors weighed what could be next for Federal Reserve interest rate policy. Investors had been hoping for rates to be cut later this year off the back of data that indicated an easing of inflationary pressures.
On Tuesday, Cleveland Fed President Loretta Mester said that she does not believe the central bank has reached a point at which rates can be held steady and needed to stick to its current approach as inflation remained sticky.
That echoed the tone of Fed officials who in recent days indicated that more work needs to be done to bring inflation down and that further rate hikes are not off the table. Other Fed speakers have, however, urged caution, noting that the impact of higher rates hasn’t been fully felt.
On Wednesday, investors will be following further Fed speaker comments, as well as the release of building permit and housing starts data for April.
