US Treasury yields plummet as inflation surprises, Fed dovish bets grow

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US Treasury yields plummet as inflation surprises, Fed dovish bets grow
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US Treasury bond yields tanked on Thursday after the US Bureau of Labor Statistics (BLS) revealed a surprise fall in inflation before Wall Street opened.

US 10-year Treasury yield drops to 4.214% following unexpected -0.1% MoM contraction in June CPI . Core CPI increases by just 0.1% MoM, bolstering predictions for Fed rate cuts beginning September 2024. Gold exceeds $2,400 and Silver ascends past $31.00 as traders forecast 49 bps of easing by December 2024. US Treasury bond yields tanked on Thursday after the US Bureau of Labor Statistics revealed a surprise fall in inflation before Wall Street opened.

Fed FAQs What does the Federal Reserve do, how does it impact the US Dollar? Monetary policy in the US is shaped by the Federal Reserve . The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy.

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