The producer price index fell 0.2% in May, lower than expectations, pushing Treasury yields lower.
"Both the headline and core US PPI inflation were significantly lower than expected, strengthening the view that inflationary pressures have finally started to ease," Rabobank researchers said in a note Friday.Deutsche Bank analysts said on Friday that, taken together, the data had led investors to grow more confident about the prospect of interest rate cuts by the U.S. Federal Reserve.
"Given those data releases, investors dialled up the prospects of rate cuts from the Fed, and the amount priced in by the December meeting was up +6.2bps on the day to 50bps," the analysts, led by Henry Allen, said in a note."In turn, that led to a fresh rally for US Treasuries , which got another boost from a strong 30yr auction later in the session that saw the highest bid-to-cover ratio in 12 months.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
10-year Treasury yields slip as traders digest surprise drop in wholesale pricesThe producer price index fell 0.2% in May, lower than expectations, pushing Treasury yields lower.
Read more »
Election InformationEarly Voting: Monday, May 20 - Friday, May 24; Election Day: Tuesday, May 28
Read more »
Treasury yields continue to tumble after PPI fell in MayU.S. Treasury yields fell again on Thursday.
Read more »
Treasury yields rise ahead of May jobs reportU.S. Treasury yields were higher Friday as investors awaited the release of labor market data that could provide hints about the outlook for interest rates.
Read more »
Treasury yields rise ahead of May jobs reportU.S. Treasury yields were higher Friday as investors awaited the release of labor market data that could provide hints about the outlook for interest rates.
Read more »
US Treasury sells $22B 30Y bonds at lower-than-expected yield on stronger demandUS Treasury sells $22B 30Y bonds at lower-than-expected yield on stronger demand
Read more »