The Fed's favorite inflation gauge was posted during the previous week, which impacted some higher volatility in the U.S. Treasury yields. The Personal Consumption Expenditure index ended May by 0,1% higher from the previous month, bringing the index to the level of 2,3% on a yearly basis. The core PCE remained a bit elevated with 0,2% in May and 2,7% for the year. Still, both figures were in line with market expectations, which was the main reason for 10Y U.S. Treasury benchmark yields drop to the level of 4,25% at the end of the week, from 4,40% where the week started.
A drop in inflation figures are increasing market expectations that the Fed might cut interest rates in September. However, a week ahead might bring again some higher volatility in the U.S. Treasury yields as the major jobs data will be posted. For the week ahead the JOLTs Job Openings, the Non-farm Payrolls and the June unemployment will be posted. Considering Fed's dual mandate, bonds market participants will be closely watching these data.
A drop in inflation figures are increasing market expectations that the Fed might cut interest rates in September. However, a week ahead might bring again some higher volatility in the U.S. Treasury yields as the major jobs data will be posted. For the week ahead the JOLTs Job Openings, the Non-farm Payrolls and the June unemployment will be posted. Considering Fed's dual mandate, bonds market participants will be closely watching these data.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.