Treasuries turn lower with weak producer price growth

Tuesday, 11. June 2019 14:50

Prices of securities issued by the Department of the Treasury in Washington dropped on Tuesday with the exception of shorter-term maturities and yields jumped. Investors were looking to stocks for profit against the backdrop of a Federal Reserve determined to act to prevent a downturn in the economy. An interest rate cut would make equities more appealing.

The factory gate inflation rate dropped to 1.8% from 2.2% in May. Growth in producer prices advanced by 0.1 percentage points to 2.3% when food and energy are taken out of the calculation, but against a negative revision of 0.2 points for April.

The two-day US note yield was little changed at 1.924% at 10:50 am ET. The ten-year rate grew 1.9 basis points to 2.165% after touching 2.179% for the first time this month. The yield on the 30-year bonds advanced by a point to 2.639%. Corresponding futures were 0.05%, 0.12% and 0.18% in the red, respectively.

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