US Treasury yields fall amid rising rate cut expectations
The yield on the two-year Treasury yield, which is the most sensitive to interest rate changes, fell 4.8 basis points to 3.683% at 7:33 p.m. Makkah time. The 10-year yield fell 6 bps to 4.233%, and the 30-year yield was down 6.2 bps to 4.823%.
This came after official data released yesterday showed that the annual inflation rate held steady at 2.7% in July, contrary to expectations of a rise to 2.8%. This led to expectations of a 25 bps rate cut by the Fed at the September meeting rising to 100% today, compared to 94% yesterday and 57% a month ago, according to CME FedWatch estimates.
Expectations of another rate cut of the same size at the October meeting also rose to 68%, up from 60% yesterday and 34% a month ago.
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