Treasury Yields Drop As Soft Inflation Fuels Fed Rate Cut Bets

U.S. Treasury yields experienced a decline on Wednesday, influenced by softer-than-expected inflation data. The 10-year Treasury yield fell by approximately three basis points to 4.255%, while the 2-year Treasury yield decreased over one basis point at 3.711%. This drop in yields follows the release of July’s Consumer Price Index (CPI), which held steady at 2.7%, as per data from the Bureau of Labor Statistics, defying analysts’ expectations for a year-over-year rise of 2.8%.