U.S. Treasury yields held steady on Wednesday as investors awaited a slew of key economic data and closely watched the latest tariff developments.
At 6:10 a.m. ET, the benchmark 10-year Treasury yield declined less than 1 basis point to 4.166%. The 2-year Treasury yield was up less than one 1 basis point to 3.662%.
One basis point is equivalent to 0.01% and yields move inversely to prices.
Investors are keenly anticipating a batch of fresh economic data that will offer insights into the health of the U.S. economy amid worries that the U.S. is close to a recession, after U.S. President Donald Trump slapped high tariffs on international trading partners in April.
Data on gross domestic product in the first quarter is out at 8:30 a.m. ET, and is expected to show a quarterly annualized growth rate of 0.4%, adjusted for seasonality and inflation, per estimates from Dow Jones. Several Wall Street banks have cut g their GDP forecasts and are estimating negative growth.
Additionally, the personal consumption expenditures price index for March, which is the Federal Reserve’s preferred inflation gauge, is due shortly after, at 10 a.m. ET. Economists polled by Dow Jones see no gain for March and a 2.2% reading for headline inflation.
Investors have also been monitoring the latest tariff developments with some relief as Trump appears to be willing to negotiate on tariffs with trade partners.
Commerce Secretary Howard Lutnick told CNBC on Tuesday that the White House would soon announce a trade deal, but the country wasn’t named. Trump also said later that tariff negotiations with India are “coming along great” and a deal would be reached soon.
Trump also softened automotive tariffs, signing an executive order on Tuesday that would reduce the overall level of duties on vehicle imports that had been affected by separate levies “stacking” on top of each other.
