US 10-Year Yield Holds Decline Ahead of CPI

The yield on the 10-year US Treasury note hovered around 4.05% on Thursday after slipping nearly 5 basis points in the prior session, as traders awaited August consumer inflation data that could strengthen bets on a larger 50 basis point Federal Reserve rate cut. On Wednesday, data showed producer prices unexpectedly fell 0.1% in August, following a downwardly revised 0.7% increase in July and missing forecasts for a 0.3% gain. The decline eased concerns about persistent inflation and reinforced expectations that the Fed will continue with policy easing. Markets are fully anticipating a 25 basis point cut next week, while assigning an 8% probability to a more aggressive half-point move. Meanwhile, the Trump administration said it would appeal a federal judge’s ruling temporarily blocking President Trump from firing Fed Governor Lisa Cook. Separately, Stephen Miran, a dovish nominee, advanced in the Senate Banking Committee’s confirmation process to join the Fed.