Us Treasuries have continued their rally, traders are waiting for the key US CPI report, and the latest inflation data could spur market expectations that the Fed will cut interest rates more sharply and faster this year, Zhitong Finance has learned. Global bond prices rose, Treasury yields fell across the board, and yields on 2-year Treasuries led the decline. The money market is now fully priced. The fed is likely to cut interest rates by 25 basis points in September this year, with a 62% chance of a second cut.
Tuesday's focus is US April PPI data, followed by US April CPI data on Wednesday, both of which are expected to show a slowdown in core inflation at an annual rate. However, there are many other areas of concern for the market-earlier this year, house prices in the United States repeatedly exceeded expectations, causingFreeclaimclubcoinThere has been a deep sell-off in the market; US consumer inflation expectations for the coming year are at their highest level since November, according to a survey released by the New York Fed on Monday.
"this is just a number, but clear messages from PPI today and CPI tomorrow may help dispel some of the policy fog," Soci é t é G é n é rale strategists, including Kenneth Broux, wrote in a report.
Since the last inflation data were released in March, there are signs that the US labor market is weakening, which has led to a gradual increase in the number of investors.FreeclaimclubcoinBet on Fed easing this year. Markets have revived expectations of the first rate cut in September, rather than November, and revived bets on two, rather than one, rate cuts. The yield on the interest rate-sensitive 2-year Treasury note fell two basis points to 4% on Tuesday.Freeclaimclubcoin.84%, down about 20 basis points from the peak two weeks ago.
Still, Fed officials are calling for patience. Bowman, a governor of the Federal Reserve, said Friday that she did not expect interest rate cuts in 2024 to be appropriate, noting that prices continued to rise in the first few months of the year.