Treasuries See Further Downside Ahead Of Key Economic Data

(RTTNews) - Treasuries moved to the downside during trading on Wednesday, extending the pullback seen over the two previous sessions.

Bond price came under pressure in early trading and remained firmly negative throughout much of the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.7 basis points to 4.192 percent.

The ten-year yield closed higher for the third straight session, climbing further off last Friday's one-month closing low.

Uncertainty about the outlook for interest rates continued to weigh on treasuries ahead of the release of key U.S. economic data in the coming days.

While Tuesday's consumer price inflation data was largely in line with estimates, the slightly more modest than expected slowdown in core price growth further reduced the already slim chances of an interest rate cut in May.

On Thursday, the Labor Department is scheduled to release its report on producer price inflation in the month of February, which may shed additional light on the outlook for interest rates.

Producer prices are expected to rise by 0.3 percent in February, matching the increase seen in January, while the annual rate of producer price growth is expected to accelerate to 1.1 percent from 0 .9 percent.

Reports on weekly jobless claims and retail sales are also due to be released on Thursday, with retail sales expected to rebound in February after slumping in January.

On Friday, trading may be impacted by reaction to reports on import and export prices, industrial production and consumer sentiment.

The University of Michigan's preliminary report on consumer sentiment in March may be in focus, as it includes reading on inflation expectations.

While the producer price inflation data is likely to be in the spotlight on Thursday, trading could also be impacted by reaction to the jobless claims and retail sales data.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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