2-month T-bill rate leads drop in Treasury yields as traders factor in inflation data, possible debt-ceiling resolution

The yield on the 2-month T-bill led Wednesday afternoon’s decline in Treasury yields, as traders factored in April’s consumer-price index data and some possibility of a resolution to the U.S. debt ceiling in coming months. The 2-month rate dropped to 5.009% as of 12 p.m. Eastern time, down 11.2 basis points from Tuesday’s close of 5.121%, according to Tradeweb. If the yield ends New York trading below 5%, it will be the first time that’s happened since the end of April. Meanwhile, Treasury yields remained broadly lower in afternoon trading, with the 3-year yield falling 12 basis points to around 3.6%, according to FactSet,…