U.S. Treasury yields rose on Wednesday as investors considered the latest economic data and weighed the state of the economy.
At 4:54 a.m. ET, the 10-year Treasury yield was last up by over two basis points to 4.6273%. The 2-year Treasury yield was last more than three basis points higher to 4.9414%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors weighed economic data as uncertainty about the state of the economy and how this could affect Federal Reserve monetary policy decisions continued.
On Tuesday, the S&P Global Flash manufacturing PMI for the U.S. came in at a four-month low of 49.9 for April. Readings below 50 indicate that the sector is contracting. The data therefore suggested to investors that the economy may be easing slightly.
That comes as recent economic data has widely suggested resilience in the economy in the face of elevated interest rates and persistent inflation. Expectations for when interest rates will be cut by the Fed have moved backward in recent weeks and questions have emerged about whether there could be fewer cuts than anticipated this year.
More economic data is due as the week continues, including durable goods orders on Wednesday, ahead of a first-quarter domestic product reading on Thursday and the personal consumption expenditures price index on Friday.
The data comes ahead of the Fed’s next meeting on April 30-May 1. The central bank is widely expected to keep rates unchanged, but investors will be watching closely for hints about the path ahead for monetary policy. Fed officials have in recent weeks appeared cautious about a timeline for rate cuts.
