11.09.202502:47:42UTC+00US 10-Year Yield Holds Decline Ahead of CPI

The yield on the 10-year US Treasury note remained around 4.05% on Thursday, following a decline of nearly 5 basis points in the previous session. This comes as investors await consumer inflation data for August, which could potentially bolster expectations of a more significant 50 basis point rate cut by the Federal Reserve. On Wednesday, reports indicated that producer prices unexpectedly decreased by 0.1% in August. This follows a revised increase of 0.7% in July and fell short of the anticipated 0.3% rise. The decline in producer prices has alleviated some concerns regarding ongoing inflation and has bolstered the belief that the Fed will proceed with its policy easing measures. Markets are fully pricing in a 25 basis point cut next week, while also considering the possibility of an 8% chance of a more substantial half-point reduction. In other developments, the Trump administration announced intentions to appeal a federal judge’s decision temporarily preventing President Trump from dismissing Fed Governor Lisa Cook. Separately, Stephen Miran, known for his more accommodative policy stance, progressed in the confirmation process before the Senate Banking Committee to join the Federal Reserve.