U.S. Treasury yields remained steady on Wednesday morning as investors eagerly await fresh economic data, following the recent December inflation figures. The benchmark 10-year Treasury yield stood at 4.1595%, a slight decrease of 1 basis point. Meanwhile, 2-year and 30-year Treasury yields showed minimal change, trading at 3.524% and 4.823% respectively. This stability in yields comes as markets digest the November Producer Price Index, retail sales data, and December existing home sales figures, all set for release on Wednesday. The recent consumer price index (CPI) data, released on Tuesday, revealed a 2.7% increase in the 12 months to December, matching market expectations. This figure, while stable compared to the previous month, is a key inflation metric that could influence the Federal Reserve's monetary policy decisions. Adding to the market's attention, an ongoing criminal investigation into Fed Chair Jerome Powell is also underway, focusing on his involvement in a $2.5 billion renovation of the central bank's headquarters and congressional testimony. The case has sparked concerns about the Fed's independence from political influence, with President Donald Trump previously criticizing the Fed's monetary policy. Powell emphasized the importance of the Fed's ability to set interest rates based on evidence and economic conditions, rather than political pressure. In response, global central bankers, including the heads of the European Central Bank and the Bank of England, publicly defended Powell, asserting that the independence of central banks is vital for price, financial, and economic stability. CNBC's Dan Mangan contributed to this report.
