FX.co ★ US 10-Year Yield Steady Ahead of Inflation Data

The yield on the US 10-year Treasury note maintained its position around 4.28% on Tuesday, as investors anticipated the release of consumer inflation data, which has the potential to impact the Federal Reserve's policy stance. Expectations for the July Consumer Price Index (CPI) suggest a 0.2% increase, slightly less than the 0.3% rise observed in June. The annual rate is expected to accelerate for the third month in a row, reaching 2.8%. Meanwhile, Core CPI is projected to speed up to a 0.3% increase. Despite ongoing inflationary pressures, market sentiment reflects nearly a 90% probability of a Federal Reserve rate cut in September. In addition to inflation data, traders will be paying close attention to forthcoming reports on the Producer Price Index (PPI), retail sales, and industrial production for additional economic insights. In terms of trade, President Donald Trump has extended the US-China truce by an additional 90 days, providing negotiators with more time to finalize an agreement.