US Treasury yields fall ahead of inflation data

U.S. Treasury Yields Decline Ahead of Key Inflation Data

U.S. Treasury yields fell on Wednesday as investors weighed fresh economic data and awaited the Federal Reserve’s preferred inflation measure.

The two-year yield, closely tied to rate expectations, dropped 4.5 basis points to 4.209% at 5:26 p.m. in Riyadh. The 10-year yield slid 5.5 basis points to 4.246%, while the 30-year yield declined 5 basis points to 4.431%.

The moves follow Nov.26’s sharp rise in the 10-year yield—the steepest in two weeks—after Monday’s session saw its biggest daily drop since August.

Fed minutes released Tuesday showed policymakers remain cautious about uncertainty surrounding the neutral rate and favor a gradual approach to reducing borrowing costs.

Economic data showed U.S. GDP grew 2.8% annualized in Q3, matching initial estimates but slowing from 3% in Q2. Jobless claims fell by 2,000 to 213,000 last week, the lowest in seven months.

Investors are now focused on the upcoming core PCE price index, the Fed’s preferred inflation gauge, to assess the likelihood of rate cuts.