Houston's Rate Sheet

Treasury yields back up

After a small decline in Treasury yields yesterday, the Consumer Price Index helped to push them back up. Oil prices are continuing to push consumer prices up and the Fed will more than likely going to raise rates to offset this trend. This development will more than likely push mortgage rates as well. Reuter's has the details:

U.S. Treasury debt prices fell on Wednesday after a stronger-than-expected U.S. core consumer prices reading for March, suggesting the Federal Reserve might continue raising interest rates beyond May.

U.S. March core consumer prices, which exclude food and energy, rose 0.3 percent, above economists' expectations for a rise of 0.2 percent month-on-month.

Benchmark 10-year notes -- which respond closely to inflation expectations -- turned lower in price to trade down 2/32 for a yield of 5.00 percent, up from 4.96 percent just before the report and versus 4.99 percent late on Tuesday. Bond yields and prices move inversely.

posted by Vincent Biondillo @ 8:49 AM