Treasury Yields Edge Lower
The yield on the US 10-year Treasury note edged lower to 4.84% on Monday, as investors positioned themselves ahead of a series of key economic releases this week that could influence expectations for the Fed’s next policy moves. Meanwhile, declining oil prices helped ease concerns over further inflationary pressures. This followed comments reported by CNN on Sunday, in which President Trump said it was “highly unlikely” that he would order further strikes against Tehran if negotiations showed progress. Markets are now turning their attention to this week’s CPI and PPI releases, with expectations pointing to an acceleration in both annual headline consumer and producer inflation. Against this backdrop, market-implied odds of another 25bps Fed rate hike next month currently stand at around 80%.
The yield on the US 10-year Treasury note edged lower to 4.84% on Monday, as investors positioned themselves ahead of a series of key economic releases this week that could influence expectations for the Fed’s next policy moves. Meanwhile, declining oil prices helped ease concerns over further inflationary pressures. This followed comments reported by CNN on Sunday, in which President Trump said it was “highly unlikely” that he would order further strikes against Tehran if negotiations showed progress.
Markets are now turning their attention to this week’s CPI and PPI releases, with expectations pointing to an acceleration in both annual headline consumer and producer inflation. Against this backdrop, market-implied odds of another 25bps Fed rate hike next month currently stand at around 80%.