SynopsisUS Treasuries maintained gains as consumer prices rose moderately in July. The government's ten-year note auction cleared at a high yield reflecting investor concerns.

Inflation data weakened the case for a Federal Reserve rate hike next month. S.

Treasury building in WashingtonUS Treasuries retained their gains on Wednesday following the release of inflation data that showed that consumer prices rose moderately in July. 683%, the highest in nearly two decades, Reuters reported.

The inflation reading weakened the case for a Federal Reserve rate hike next month. “The demand for this paper was solid,” Lou Brien, economic strategist at DRW Trading Group in Chicago, told Reuters.

However, he noted that the auction yield was the highest since 2007. 1872%.

233%. Bond yields move inversely to prices.

4% in June, its first monthly decline in six years. 2% in July after remaining unchanged in June.

After the inflation figures were released, US rate futures priced in a 38% chance of a September rate hike, down from 48% late on Tuesday. “Today’s data shows that we could be past peak inflation.

It does take some pressure off the Fed. “We expect no rate hikes this year.

But as much as the current stats are showing that inflation could be moderating, much hinges on oil prices and the Middle East,” Bory added. Iran and the United States remained divided over efforts to secure a permanent end to the Gulf war.

A senior Iranian source said talks had made no progress toward reviving the interim agreement reached in June or setting a timeline for its implementation. 87, partly pressured by the subdued inflation data, after rising for four consecutive sessions.

“Before the auction, Treasuries were retracing the post-CPI gains, although 10-year notes went into the bidding deadline a couple of basis points richer on the day,” said Vail Hartman, a rates associate at BMO in New York. Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets.

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