U.S. Producer Prices Climb Much More Than Expected In February

U.S. producer prices rose in February by a much larger-than-expected amount, according to the Labor Department report. The surprise increase heightens near-term inflation risks, is likely to push Treasury yields higher and reinforce a hawkish Fed outlook, pressuring rate-sensitive assets.

Analysis

U.S. producer prices rose in February by a much larger-than-expected amount, according to the Labor Department report. The surprise increase heightens near-term inflation risks, is likely to push Treasury yields higher and reinforce a hawkish Fed outlook, pressuring rate-sensitive assets.