- Yields on 2-year Treasury up 0.9 basis points
- Yields on 10-year Treasury up 1.1 basis points
- Yields on 30-year Treasury down 1.1 basis points
Traders are eagerly awaiting an important update on U.S. consumer price data as bond yields remain steady. The Labor Department is set to release the seasonal adjustments to the consumer price index, which will provide valuable insights into recent data and the potential impact on inflation. This update is crucial in determining whether the anticipated disinflation as we exited 2023 was as significant as expected. Additionally, Lorie Logan, the Dallas Federal Reserve president, is scheduled to deliver a speech outlining plans to reduce the Fed’s balance sheet tightening program. These developments have the potential to influence market sentiment and shape future monetary policies.
Consumer Price Index Update
The focus of attention is on the updated consumer price index, which will shed light on the recent trends in inflation. Economists are keen to verify whether the disinflation observed towards the end of 2023 was as substantial as initially estimated. Last year, the annual revision to the consumer price index had a significant impact on the market, with inflation for year-end 2022 being revised upwards. Traders and analysts will closely examine the updated data to gain insights into the current state of inflation and its potential implications for the economy.
Speech by Lorie Logan
Lorie Logan, the Dallas Federal Reserve president, is scheduled to give a speech that could provide further clarity on the future direction of monetary policy. Logan has previously outlined plans to reduce the Fed’s balance sheet tightening program, and her speech may offer additional details or insights into the timeline and strategy for this reduction. Any indications of a more aggressive or conservative approach to tightening monetary policy could impact market expectations and bond yields.
As traders eagerly await the release of the updated consumer price index and Lorie Logan’s speech, bond yields have remained steady. The data on inflation trends and the insights provided by the Dallas Federal Reserve president will be closely scrutinized for potential market impacts and indications of future monetary policy decisions. The bond market will likely react to any surprises or deviations from expectations, making these upcoming events significant for investors and market participants alike.