Treasuries Selling Off; PPI Rises More Than Expected

The Bureau of Labor Statistics was about a half-hour late with its release of March’s Producer Price Index report, but Treasuries had begun their sell-off already. Today’s report revealed that headline PPI rose by 1% last month versus an estimate of 0.5%. Year-over-year, that measure rose to 4.2% due to last year’s deflationary readings dropping out of the calculation. Without food and energy, core PPI notched a monthly rise of 0.7% and that was more than the 0.2% that analysts predicted. Year-over-year, core PPI rose to 3.1% from 2.5% versus an estimate of 2.7%. But like the problems with the BLS website, these reading are hoped to be transitory.

Meanwhile, falling prices have pushed the Long Bond’s yield up to 2.35% with the Ten-Year’s yield rising to 1.68%. The Two-Year is little changed at 16 basis points. Crude oil is off slightly to $59.34 and gold has slipped about $19 to $1,737. Equity futures are light green.