US Treasury yields mixed as investors await US inflation data – NBC 6 South Florida

US 10-year Treasury bonds fell on Wednesday as investors awaited the key US inflation report due later this week.

At 5:00 a.m. ET, the yield on the 10-year Treasury note fell below one basis point to 3.8273%, while the yield on the 2-year Treasury note was unchanged at 3.865%.

Yields and prices move in opposite directions. One basis point equals 0.01%.

Market participants are eagerly awaiting the release of U.S. personal consumption expenditures (PCE) data on Friday to get a better picture of the health of the world's largest economy. Federal Reserve officials use the PCE reading as the main basis for measuring inflation.

Earlier, Fed Chairman Jerome Powell said late last week that “the time has come for a policy adjustment,” which increased expectations of a rate cut at the central bank's next meeting. However, Powell declined to provide precise details on the timing or extent of the cut.

“The direction is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the allocation of risks,” Powell said Friday in his keynote speech at the Fed's annual meeting in Jackson Hole.

Market participants are firmly expecting a rate cut at the Fed's meeting on September 18. According to the CME Group's FedWatch tool, traders are currently calculating a probability of around 63.5 percent for a rate cut of 25 basis points next month, while 36.5 percent are calculating a cut of 50 basis points.

— CNBC's Jeff Cox contributed to this report.