US 10-Year Yield Steady Ahead of Inflation Data

The yield on the US 10-year Treasury note held around 4.28% on Tuesday as investors awaited consumer inflation data that could influence the Federal Reserve’s policy outlook. July CPI is expected to rise 0.2%, just below June’s 0.3%, while the annual rate is projected to accelerate for a third consecutive month to 2.8%. Core CPI is also forecast to quicken to 0.3%. Despite persistent inflation pressures, markets are pricing in nearly a 90% chance of a Fed rate cut in September. Traders will also monitor upcoming data on PPI, retail sales, and industrial production for further economic signals. On the trade front, President Donald Trump extended the US-China truce by another 90 days, giving negotiators more time to reach an agreement.