Traders work on the floor of the New York Stock Exchange (NYSE) as the opening bell rings on March 5, 2026 in New York City.
Angela Weiss | AFP | Getty Images
U.S. Treasury yields fell on Tuesday after a weaker-than-expected producer price index and oil prices fell following recent developments in the Middle East.
yield of 10 years US Treasury The note, a benchmark for government borrowing, fell more than 1 basis point to 4.279%.
of 2 year Treasury bill The yield, which is more sensitive to the Fed’s short-term interest rate decisions, fell less than 1 basis point to 3.776%. longer date 30 year government bond The yield fell more than 1 basis point to 4.884%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
On Tuesday, the Bureau of Labor Statistics reported that the producer price index rose 0.5% in March compared to February, but well below the 1.1% expected by economists surveyed by Dow Jones.
The so-called core PPI, which excludes volatile food and energy prices, rose just 0.1%, below consensus expectations for a 0.5% rise.
The wholesale price data comes as investors continue to assess the lasting impact of the Iran war on inflation and the direction of the Federal Reserve’s interest rate policy later this year.
“Net, net, producers are still reporting above-normal price increases, which will put upward pressure on inflation that consumers are already feeling,” said Chris Rupkey, chief economist at FWDBONDS. “The only good thing is that producer price inflation was probably not as bad as feared, given that March is the first full month since the Iran war began.”
“Based on today’s producer price report, it’s only a matter of time before further inflation trickles down to consumers,” Rapkey added.
Energy prices fell on Tuesday. West Texas Intermediate Crude Oil Futures It last traded at $93 a barrel, after falling 5% as investors appreciated the U.S. blockade of the Strait of Hormuz, aimed at forcing Iran to reopen the vital shipping lane.
U.S. Treasury yields edged lower on Monday amid renewed optimism about the possibility of a durable solution to the conflict following last week’s shaky ceasefire agreement.
