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US bond yields have continued to decline since the opening of trading on Wall Street, affected by the latest US inflation reading; the CPI data, that highlighted a continued decline in price growth in the United States last June.
The data issued Thursday raised speculation that the Federal Reserve may seriously consider starting to cut rates soon, especially after the testimony of Federal Open Market Committee Chairman Jerome Powell, during which he indicated that the central bank does not want to wait for inflation to fall to 2.00% in order to begin rate cutting.
Ten-year US Treasury bond yields fell to 4.187%, compared to the last daily close, which recorded 4.290%. Returns on these sovereign securities rose to their highest level on the current trading day at 4.301%, compared to the lowest level recorded at 4.170%.
The US consumer price index fell last June by -0.1% compared to the reading recorded the previous month at 0.0%, according to the monthly reading, which fell below market expectations, which indicated 0.1%.
The annual reading of the US Consumer Price Index also recorded an increase of 3.00% last June, compared to the reading of the same month last year, which recorded 3.3%. The actual reading for last month was lower than market expectations, which indicated 3.1%.
