U.S. Treasury yields fell as investors awaited the release of U.S. inflation data for clues on how much the Federal Reserve may cut interest rates next week.
The rate of return is 10-Year Treasury Bond fell nearly 3 basis points to 3.614%, 2-Year Treasury Bond The yield fell 4 basis points to 3.565%.
Yields and prices move in opposite directions. 1 basis point is equivalent to 0.01%.
Market participants look forward to release Two important inflation reports this week. U.S. consumer price index (CPI) data for August will be released at 8:30 a.m. ET on Wednesday, while the U.S. producer price index (PPI) report for August is also scheduled to be released on Thursday.
The report was released ahead of the Federal Reserve’s September 17-18 meeting, with traders widely expecting the Fed to cut interest rates. The only remaining question appears to be how much the Fed will cut interest rates.
Some economists believe the Fed should cut interest rates by half a percentage point next week, accusing the central bank of having previously “too far, too fast“With the tightening of monetary policy.
Others described the move as “very dangerous“For the market, it actually pushed the Federal Reserve to cut interest rates by a quarter percentage point.
Traders currently see a 67% chance of a 25 basis point cut, with 33% predicting a 50 basis point cut. CME Group’s FedWatch Tool.
