Arabic version: عوائد سندات الخزانة تحافظ على مستويات قرب أعلى مستوياتها في عدة سنوات بعد مؤشر أسعار المستهلكين لشهر أغسطس
According to Cnbc, U.S. Treasury yields remained around multiyear highs Friday as bond markets assessed August consumer-price data and investors increased expectations for a Federal Reserve rate increase next week. Trading in 30-day fed funds futures at the Chicago Mercantile Exchange put the odds of a quarter-percentage-point increase at about 86%, up from about 72% Thursday.
The policy-sensitive 2-year Treasury note yield rose 7.8 basis points to 4.628% and touched its highest level since July 2024. The 10-year Treasury note yield gained 2.9 basis points to 4.97%, after earlier reaching 4.992%, its highest level since October 2023. The 30-year Treasury bond yield was little changed at 5.356%. One basis point equals 0.01%, and bond yields and prices move in opposite directions.
The Bureau of Labor Statistics said the consumer price index rose a seasonally adjusted 0.4% in August, lifting the 12-month increase to 3.4%. Both figures matched the Dow Jones consensus but remained above the Federal Reserve’s 2% inflation goal. Excluding food and energy, core CPI increased 0.3% for the month, 0.1 percentage point above economists’ forecast, while the annual core rate was 2.4%, in line with Wall Street consensus.
The CPI report is the final major inflation indicator before the Fed’s policy meeting next week, which ends next Wednesday with a vote on its key interest rate. The rate currently stands at 3.50% to 3.75%. Thursday’s Treasury sell-off followed U.S. oil prices topping $100 a barrel amid further escalation in the Middle East. The Treasury Department also bought back about $5.2 billion in off-the-run 10-year notes and 20-year bonds, roughly half of the $10.5 billion offered.
Oil prices were lower Friday. West Texas Intermediate futures fell 2.4% to settle at $100.05 per barrel, while Brent futures slid 2.8% to $104.61. Thursday’s wholesale inflation report showed prices rose 0.4% in August, while core wholesale inflation increased 0.2%, below forecasts of 0.3%.
