Treasury yields of the United States: investors fear the potential recession

The US treasure yields increased on Tuesday when investors waited for the last reading about the consumer price index report.

The reference point 10 -year Treasury Performance It was almost 7 higher basic points at 4,278%. He 2 -year Treasury Performance It was the last 4 highest basic points at 3,937%, after before the day it fell to its lowest level since October.

A basic point is equal to 0.01%, and yields and prices move in opposite directions.

The consumer price index report must be submitted on Wednesday at 8:30 am et. Economists surveyed by Dow Jones expect the CPI in February to increase 0.3% month after month and 2.9% year after year. It is forecast that the central ICC, which eliminates food and energy prices, has expanded at 0.3% month to month and 3.2% year after year.

The producer’s price index, another inflation meter, will be released on Thursday. Both readings must throw some light on the consumer health of the United States following the recent signs that indicate that the economy may be softening.

These readings are ahead of the March meeting of the Federal Reserve, which will take place at the end of this month.

“It will really be important that we do not see an upward surprise on the CPI because at this point, the Fed has a lot of dry dust to intervene to reduce rates and try to boost demand if the economy slows significantly. But they can only do it if they feel that inflation expectations and inflation are well anchored,” said Ross Mayfield, Baird investment analyst.

The yields also increased after President Donald Trump declared in Truth Social on Tuesday morning that tariffs on Canadian steel and aluminum imports would double to 50% from 25%, Effective Wednesday. This was in response to the Ontario government’s decision to raise a 25% duty on electricity exports to the United States.

However, later in the day, Ontario Doug Ford Prime Minister saying He was temporarily suspending the 25% surcharge after speaking with the United States Secretary of Commerce, Howard Lutnick. The White House commercial advisor, Peter Navarro, followed that by telling CNBC on Tuesday afternoon that Trump would not raise Steel and Canadian aluminum rates at 50%.

Tuesday afternoon, news It was also broken that Ukraine agreed to a high fire of 30 days, if Russia accepts, in a plan negotiated by the United States, the United States will immediately resume share intelligence and security assistance with Ukraine.