Overnight Selling Raises Treasury Yields

An unexpected wave of overnight selling has pushed the yield on the Thirty-Year Treasury bond to 2.35% and it hasn’t been that high since January of 2020. The Ten-Year briefly touched the 1.61% level achieved last week but has since settled down a bit while the Two-Year is little changed at 15 basis points. Crude oil is steady at $65.92 but gold’s $17 slide has moved that price down to $1,705. Equity indices look positive in pre-market trading.

Meanwhile, the Bureau of Labor Statistics released its February report for the Producer Price Index and the results were pretty close to the expected estimates. Headline PPI rose 0.5% last month as the year-over-year rate jumped to 2.8% from 1.7%. That’s a little less alarming when one sees that last February’s monthly plunge of 0.5% has fallen off the twelve-month rate calculation. Without food and energy, core PPI rose by the anticipated 0.2% with the year-over-year pace rising to 2.5% from 2%. Again, a changing base is a major contributing factor in the year-over-year result. A little later today, the University of Michigan will release its preliminary March report for its Consumer Sentiment Index and a move to 78.5 from 76.8 is expected.