The US treasury bond yields are rising, driven by the higher-than-expected Producer Price Index (PPI) in December.

As the market considers the new leadership of the Federal Reserve, higher-than-expected U.S. producer price inflation data has pushed up U.S. treasury yields. The PPI rose by 0.5% in December, faster than the 0.2% in November. Economists surveyed by The Wall Street Journal had predicted an increase of 0.3%. A few hours before this data was released, U.S. President Trump announced that he had chosen Kevin Warsh to replace Fed Chairman Powell. The bond market had little reaction to this announcement, but yields rose due to the inflation data, before later falling back slightly. The 10-year treasury yield was 4.251%, while the 2-year yield was 3.557%.