From Standard & Poor's Equity ResearchMARKETSCOPE : Treasuries fell in price Tuesday as June PPI rose 0.5%, higher than expected, and year-over-year growth of 1.9% in the core reading stoked concerns of swelling inflation and more interest rate hikes by the Fed. The market priced in firm numbers in the CPI report Wednesday morning.
THe 10-year Treasury note sank 17/32 to 99-30/32
for a yield of 5.13%. The 30-year bond tumbled 30/32 to 89-31/32 for a yield of 5.17%. Equities were recovering from their worst levels as the bond market closed.