Treasury yields decline as investors await wholesale inflation reading

NoodlesOrTokens · 2026-02-27T12:38:23+00:00

U.S. Treasury yields fell as investors awaited wholesale inflation data, with the 10-year yield at 3.987% and the 2-year at 3.4%. The producer price index report is anticipated to influence future inflation perceptions.

NoodlesOrTokens

2026-02-27 12:38:23

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U.S. Treasury yields were lower on Friday as investors awaited wholesale inflation data, but otherwise approached a quiet end to the week.

At 6:50 a.m. ET, the benchmark 10-year Treasury yield fell more than 3 basis points to 3.987%, while the 30-year Treasury bond yield dropped 2 basis points to 4.647%. The 2-year Treasury note yield was lower by more than 4 basis points at 3.4%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Friday is the last trading day of February, and investors are anticipating the release of the producer price index, a measure of wholesale inflation, by the Bureau of Labor Statistics at 8:30 a.m. ET.

Economists polled by Dow Jones expect the headline reading to come in at 0.3%, while core PPI, which excludes volatile food and energy prices, is forecasted at 0.3%.

“While it’s unlikely that PPI is a significant market-moving event, the report will help set the stage for the release of January’s core-PCE index on March 13,” Ian Lyngen, BMO Capital Markets’ head of U.S. rates strategy, said in a note on Thursday night.

“With the process of rate normalization on hold until inflation proves to be on a sustainable path back towards the Fed’s 2.0% target, any additional context that PPI offers will be useful in refining investors’ perception of the current inflation backdrop,” he added.

Elsewhere, investors are continuing to monitor President Donald Trump’s tariff policies and tensions between the U.S. and Iran.

— CNBC’s Pia Singh contributed to this report

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