U.S. inflation in July was in line with expectations, and traders upped their bets on a September rate cut
2025-08-12 12:45:02
On August 12, after consumer price inflation was in line with expectations, US Treasury prices rose, the dollar fell sharply against a basket of currencies, and traders raised their expectations for a rate cut in September. Yields on all maturities fell sharply after the CPI data was released, with the two-year Treasury yield leading the way lower, falling 6 basis points to 3.71%. Traders increased their bets on a rate cut by the Federal Reserve, which is expected to cut rates by 25 basis points at the September 17 meeting. The probability is more than 80%.
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