US Treasury yields decreased before the June Consumer Price Index data release. The 30-year yield reached 4.958%, the 10-year yield was at 4.419%, and the 2-year remained stable at 3.9%.
Mark Cabana from BofA Securities indicated that rising inflation could lead traders to adjust their Federal rate predictions, noting a 65% likelihood of a rate cut in September as traders react to tariff effects on the economy.
The looming CPI report is expected to influence market sentiment significantly, with global bond yields being affected by Trump’s trade tariffs. Concerns over increased government spending and debt levels in developed economies are also prominent.
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