thematicdragonmatchmegaways: U.S. CPI rose less than expected in April, expectations for interest rate cuts in September were boosted
U.S. Treasuries rose, sending the 10-year yield to its lowest level in more than a month, after previously released data showed U.S. inflation cooled in April for the first time in six months.
The yield on the 10-year Treasury note fell 10 basis points to 4.dragonmatchmegaways.34%, the lowest since April 10. Yields on 2-year and 5-year bonds both fell by about 8 basis points.
After the data was released, traders raised expectations for a Fed rate cut. Interest rate swaps show that traders believe the probability of a 25 basis point rate cut by the September Fed meeting is more than 80%.
"The reason for the market's reaction is thatdragonmatchmegawaysWe weren't surprised,"said David Kelly, chief global strategist at Morgan Asset Management. "Overall, the situation is slowing down."