US Treasury yields set for monthly loss as markets wait on key Fed inflation data

Despite stable yields last Friday, tensions rise as President Trump’s legal efforts to maintain reciprocal tariffs continue, potentially influencing economic sentiment. The 30-year yield remains flat, reflecting uncertainty in market reactions to upcoming inflation data.

Investors are closely monitoring the PCE index, essential for inflation gauging, with expectations for rate cuts to ease economic pressure. However, fears surrounding the growing US deficit may lead to a challenging performance for Treasuries in the coming months.