Rising Treasury Yields Indicate Investor Concern over Economic Uncertainty and Fed Policy Decisions

On Wednesday, U.S. Treasury yields increased as investors analyzed the latest economic data and considered the overall state of the economy. At 4:54 a.m. ET, the 10-year Treasury yield had risen by more than two basis points to 4.6273%, while the 2-year Treasury yield was more than three basis points higher at 4.9414%. Yields and prices have an inverse relationship, with one basis point equivalent to 0.01%.

Investors were closely examining economic indicators amidst uncertainty about the economy’s condition and its potential impact on Federal Reserve monetary policy decisions. Recent economic data has demonstrated resilience in the economy despite high interest rates and ongoing inflation. Expectations for Fed interest rate cuts have shifted, raising questions about whether there will be fewer cuts than previously anticipated this year.

On Tuesday, the S&P Global Flash manufacturing PMI for the U.S. dropped to a four-month low of 49.9 for April, signaling contraction in the sector