U.S. 10-Year Yield Falls to 4.672% as July CPI Trims September Hike Bets
Updated
Updated · CNBC · Aug 13
U.S. 10-Year Yield Falls to 4.672% as July CPI Trims September Hike Bets
3 articles · Updated · CNBC · Aug 13
Summary
The 10-year Treasury yield slipped 2 basis points to 4.672% on Thursday, while the 2-year fell more than 2 basis points to 4.178% as traders reassessed the Fed path.
July CPI rose 0.1% from the prior month, matching expectations and prompting markets to pare back bets on a September rate hike after a second relatively encouraging core inflation reading.
Goldman Sachs said most FOMC voters would likely want to see August CPI and PPI before deciding on September, with July inflation numbers seen as acceptable.
Thursday’s next test is the July producer price index, due at 8:30 a.m. ET, with economists expecting a 0.2% monthly increase.
The softer rate-hike outlook also drew support from weaker employment data last week, easing pressure on the Fed to move immediately in September.