Reported 1 day ago
Treasuries strengthened following a successful 10-year note auction and lower-than-expected U.S. inflation data, increasing expectations for Federal Reserve interest rate cuts this year. Yields fell across various maturities after the May Consumer Price Index revealed that inflation remained subdued for the fourth consecutive month. Investors showed strong demand in the auction, accepting lower interest rates, which led to further declines in long-dated yields. Traders are now pricing in a significant chance of rate cuts by the Fed, as economic indicators suggest a potential easing cycle.
Source: YAHOO