Key inflation data drives U.S. 10-year Treasury yield decline.

On Wednesday, the 10-year Treasury yield decreased, as investors anticipated important inflation figures and other economic information that would be released later in the week.

The 10-year Treasury yield decreased by 1 basis point to 4.426% at 6:07 a.m. ET, while the 2-year Treasury yield increased slightly to 4.353%.

Yields and prices move in opposite directions, with one basis point equal to 0.01%.

The Federal Reserve's decision to cut or maintain interest rates will largely depend on the inflation data due on Wednesday, which is a crucial indicator for investors.

The 12-month rate of the Consumer Price Index (CPI) is expected to reach 2.6% in October, indicating an increase of 0.2% in the costs of goods and services for the month, according to a poll of economists by Dow Jones.

The producer price index data for October, which will be released on Thursday, will also be closely monitored by investors. Additionally, the Fed Chair Jerome Powell's speech, scheduled for later in the week, will provide investors with valuable insights into future monetary policy. Lastly, data on retail sales and industrial production will be published on Friday.

Scott Helfstein, head of investment at Global X ETFs, stated that this week's consumer prices, producer prices, and retail sales could indicate a strong economy. However, he noted that markets may be less reactive to data following the election and the Fed's rate cut last week.

After President-elect Donald Trump's victory, bond yields surged, as investors anticipated his pro-business policies and tax cuts would stimulate economic growth. Nevertheless, economists predict that these measures may lead to higher inflation.