Treasury yields gained on Wednesday as Wall Street assessed a mixed consumer price index report and its implications for the Federal Reserve's rate move next week.
The yield on the 10-year Treasury was less than 1 basis point higher at 3.652%, with the 2-year Treasury yield last up about 3 basis points at 3.639%.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Consumer prices rose 0.2% and in line with expectations for August, but the monthly core inflation figure came in slightly higher than expected. Excluding food and energy prices, CPI rose 0.3% versus a Dow Jones estimate of 0.2%. Year over year, the figure rose 3.2% and in line with estimates.
Get top local stories in DFW delivered to you every morning. Sign up for NBC DFW's News Headlines newsletter.
The report comes ahead of the Fed's Sept 17-18 meeting, with traders widely expecting a rate cut. The only remaining question appears to be by how much the U.S. central bank will reduce rates.
Some economists have argued the Fed should deliver a half-point rate cut next week, accusing the central bank of having previously gone "too far, too fast" with monetary policy tightening.
Others have described such a move as one that would be "very dangerous" for markets, pushing instead for the Fed to deliver a quarter-point rate cut instead.
Money Report
Traders are currently pricing in a 83% chance of a 25-basis-point rate cut, with 17% expecting a 50-basis-point rate reduction, according to the CME Group's FedWatch Tool.