After moving notably higher over the course of the previous session, treasuries gave back some ground during trading on Wednesday.<\/p>\n
Bond prices came under pressure in morning trading and remained firmly negative throughout the afternoon. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.7 basis points at 1.304 percent.<\/p>\n
The pullback by treasuries came as traders cashed in on yesterday’s advance, which came on the heels of relatively tame consumer price inflation.<\/p>\n
Traders were also digesting the latest batch of data, including a report from the Fed showing industrial production in the U.S. increased by slightly less than expected in the month of August.<\/p>\n
The report said industrial production rose by 0.4 percent in August after climbing by a downwardly revised 0.8 percent in July.<\/p>\n
Economists had expected industrial production to increase by 0.5 percent compared to the 0.9 percent advance originally reported for the previous month.<\/p>\n
The Fed noted late-month shutdowns related to Hurricane Ida held down the gain in industrial production by an estimated 0.3 percentage points.<\/p>\n
A separate report from the Labor Department unexpectedly showed U.S. import prices decreased for the first time since October of 2020 in the month of August.<\/p>\n
The Labor Department said import prices fell by 0.3 percent in August after climbing by an upwardly revised 0.4 percent in July.<\/p>\n
The drop surprised economists, who had expected import prices to rise by 0.3 percent, matching the increase originally reported for the previous month.<\/p>\n
Meanwhile, the report said export prices increased by 0.4 percent in August after jumping by a downwardly revised 1.1 percent in July.<\/p>\n
Economists had expected export prices to advance by 0.5 percent compared to the 1.3 percent surge originally reported for the previous month.<\/p>\n
Trading on Thursday may be impacted by reaction to another batch of U.S. economic data, including reports on retail sales and weekly jobless claims. <\/p>\n