Treasury Yields Edge Higher Ahead of June Producer Price Index

Treasury yields edged higher on Wednesday ahead of the June producer price index release scheduled for later in the session. The yield on the 10-year Treasury note stood at 4.5996 percent, more than one basis point above the prior close.2039 percent after a one-basis-point increase.

The 30-year note yield climbed more than one basis point to 5.1135 percent. Consensus forecasts called for the June PPI to hold steady after a 1.1 percent rise in May. The core PPI, excluding food and energy, was expected to increase 0.3 percent.

Bond yields had eased on Tuesday after the June consumer price index fell 0.4 percent, bringing the year-over-year rate to 3.5 percent. com reported that the cooler CPI reading reduced expectations for a July Federal Reserve rate hike. Meghan Shue, chief investment strategist at Wilmington Trust, said core inflation showed higher energy prices had not passed through materially and tariff pressures continued to fade.

"On the encouraging side [we're seeing] continued disinflation that should allow the Fed to cut by the end of the year," Shue told CNBC's "Morning Call" Wednesday.