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April PPI up 1.4%—Yields fall, energy costs threaten core inflation

5/14/2026

50 6 Full Breakdown

Summary

PPI Surges

The producer price index rose 1.4% in April, its biggest gain since March 2022.
U.S. Treasury yields fell Thursday to 3.967% on the 2-year, 4.445% on the 10-year and 5.008% on the 30-year.
HSBC warned energy costs may force midstream firms to raise prices, pushing the producer price index into core inflation.

Summary

Treasury Auction

$25 billion auction of 30-year Treasuries sold at 5.046 % on Wednesday.
Demand was modest, echoing weaker appetite for three- and ten-year notes earlier in the week.
Steven Zeng of Deutsche Bank said 5 % yields could lure pension funds if inflation stays anchored.
Kevin Warsh (Federal Reserve (Fed) chair) was narrowly confirmed by the Senate on Wednesday, sharpening political attention on Treasury markets.

History

Historical Context

In response to the 1970s oil-shock inflation that hit 13.5% in 1980, Fed Chairman Paul Volcker pushed the federal funds rate to 20% by June 1981, forcing the Treasury to sell $150 billion of 30-year bonds and driving yields above 15% in 1982. Today, a 1.4% April rise in the producer-price index coincides with 30-year Treasury auctions at about 5%.

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PPI Surges

The producer price index rose 1.4% in April, its biggest gain since March 2022.
U.S. Treasury yields fell Thursday to 3.967% on the 2-year, 4.445% on the 10-year and 5.008% on the 30-year.
HSBC warned energy costs may force midstream firms to raise prices, pushing the producer price index into core inflation.

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