CHICAGO, Apr 14 (Reuters) – U.S. bond yields rose on Wednesday as several Federal Reserve officials plan to intervene in public events, including central bank chairman Jerome Powell, who it could refer to recent inflation data.
* The 10-year benchmark paper return totaled 1.5 basis points at 1.6376%.
* Yields fell sharply on Tuesday following a robust 30-year Treasury auction and consumer price data showing little change in core inflation in March, suggesting the index is not accelerating wildly because of economic recovery from the coronavirus crisis.
* “Bond yields are more likely to turn higher going forward and the reason is that we are seeing a more positive economic outlook after the data,” said Kathy Jones, fixed income analyst at the Schwab Center for Financial Research at New York.
* “Although the returns have moved a lot higher, really 1.60% for the 10-year paper is not too high when you think that the global economy is floating and growing,” he estimated.
* Regarding the events of Fed authorities, Jones said that those responsible for monetary policy will continue to emphasize that the advance in inflationary figures will be transitory, although it will be necessary to “better reconcile the better-than-expected data with their projections to maintain the current stimuli “.
* Later Wednesday, the Fed will publish the Beige Book, a compendium of data gathered by the 12 regional central banks on current economic conditions, based on surveys and interviews with key business contacts.
* The 2-year Treasury yield, which normally moves in line with expectations for the short-term interest rate in the United States, traded less than one basis point higher at 0.1649%.
(Reporting by Karen Pierog. Edited in Spanish by Marion Giraldo)