U.S. Treasury yields slipped Wednesday as investors continue to assess the economic outlook amid rising recession fears.
As the second quarter draws to a close on Thursday, concern over a slowing economy and aggressive interest rate hikes from the Federal Reserve continue to dominate market sentiment.
On Wednesday Federal Reserve Bank of Cleveland President Loretta Mester said she will advocate for a 75 basis point hike to interest rates at the central bank's July meeting if economic conditions remain the same by then.
"I haven't seen the kind of numbers on the inflation side that I need to see in order to think that we can go back to a 50 increase," she told CNBC.
An attempted rally for risk assets fizzled out on Tuesday after a disappointing consumer confidence reading, which came in at 98.7, below Dow Jones' consensus estimates of 100.
The Conference Board's one-year ahead inflation expectations hit a record high of 8.0%, exceeding the 7.7% seen in June 2008, while the Richmond Fed's manufacturing index came in at -19, its lowest since May 2020 and well below consensus expectations of -7.