FX.co ★ US Treasury Yields Edge Down

The yield on the US 10-year Treasury note slightly decreased to 4.44% on Friday, as investors evaluated the recent University of Michigan Consumer Sentiment report alongside statements from a Federal Reserve official. July saw an uptick in consumer sentiment, accompanied by a decline in inflation expectations for both the short term and long term. Fed Governor Christopher Waller reaffirmed his advocacy for a rate cut in July, indicating a possible dissent if the Federal Open Market Committee decides to maintain current rates. Despite these remarks, market expectations remain aligned with no rate change this month, although two further quarter-point reductions are projected for September and December. Earlier in the week, consumer spending appeared robust, reflected in strong retail sales data, while both the core Consumer Price Index (CPI) and Producer Price Index (PPI) figures were softer than anticipated.