U.S. Treasury yields were mixed on Thursday morning, as investors digested the news that the Federal Reserve may start to taper its bond buying program by mid-November.
The yield on the benchmark 10-year Treasury note gave up less than a basis point, falling to 1.546% at 3:40 a.m. ET. The yield on the 30-year Treasury bond rose more than 1 basis point to 2.058%. Yields move inversely to prices and 1 basis point is equal to 0.01%.
TICKER COMPANY YIELD CHANGE %CHANGE
US3M U.S. 3 Month Treasury 0.061 0.01 0
US1Y U.S. 1 Year Treasury 0.099 0 0
US2Y U.S. 2 Year Treasury 0.356 -0.012 0
US5Y U.S. 5 Year Treasury 1.068 -0.019 0
US10Y U.S. 10 Year Treasury 1.539 -0.01 0
US30Y U.S. 30 Year Treasury 2.048 0.007 0
The 10-year rate fell to around 1.54% in afternoon trading on Wednesday, following the release of the minutes from the Fed’s September meeting. The minutes indicated that Fed officials felt that the central bank had nearly reached its economic goals and could soon begin to slowly reduce the pace of its monthly asset purchasing program.
Meanwhile, data out on Wednesday showed slightly higher than expected consumer price inflation in September. The consumer price index rose 0.4% month-on-month, versus a Dow Jones estimate of 0.3%. The index showed prices had grown 5.4% year-on-year, compared with an expected print of 5.3%.
September’s producer price index is due out at 8:30 a.m. ET on Thursday, along with weekly jobless claims data.
Auctions are scheduled to be held on Thursday for $25 billion of four-week bills, $25 billion of eight-week bills and $60 billion of 39-day bills.