Treasury Yields Slip Below 1.5% as Inflation Fears Ebb
- Benchmark 10-year rate touched lowest level in a month
- Focus for traders on CPI report and next week’s Fed meeting
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The 10-year Treasury yield fell below 1.5% for the first time in a month while the rate on the U.S. long bond dropped to a level unseen since early March, suggesting that the Federal Reserve’s assurances that elevated inflation is probably temporary are gaining acceptance from investors.
The yield on 10-year notes declined as much as 6.3 basis points to 1.471%, which is below closing levels since March, and remains under 1.5% after an auction of $38 billion of the notes drew strong demand. The 30-year bond yield touched 2.148%, last seen March 1. The moves come a day before the release of U.S. consumer-price data for May; the April increase was the biggest since 2009.