U.S. Treasury Yields Fall as Inflation Meets Forecasts

The U.S. Treasury market experienced a decline in yields following the release of data showing inflation aligned with expectations. This move, according to PANews, saw Treasury prices increase and the dollar weaken against other currencies. As a result, traders anticipate a decrease in interest rates by the Federal Reserve in September. After the Consumer Price Index (CPI) data came out, Treasury bond yields across various maturities fell significantly, with the two-year yield dropping by 6 basis points to 3.71%. This trend has led to high predictions for a 25 basis point rate cut at the Federal Reserve’s meeting on September 17th.