10-year Treasury yields down 2 bps to 1.637%
After the hot US CPI numbers on Wednesday, bond sellers have curbed their enthusiasm as Treasury yields start to slip towards the latter stages of the week.
The high this week hit 1.70% but that seems a bit of a distance away now. In turn, that has also flipped the switch for some light pressure against the dollar today.
As much as the the inflation debate looks to be in full swing now, one hot data point doesn’t really change anything for the time being. The Fed isn’t changing its mind just yet and we will have to revisit that sentiment maybe in July/August.
The market has Jackson Hole pinned for a crucial shift in the Fed stance but we will see if the data leading up to that will be able to force their hand.