NEW YORK, May 11 (Reuters) – U.S. Treasury yields declined on Thursday after data showed a slowdown in producer price growth in April, fueling expectations that the Federal Reserve will pause interest rate hikes.
US producer prices rose 0.2% in April, less than expected, the Labor Department said on Thursday.
“The inflation picture is improving markedly,” said BTIG’s Tom di Galoma. “The Fed is likely to have completed its tightening cycle.”
The benchmark 10-year government bond yield fell 8 basis points to 3.357%, as did the two-year bond yield, which fell to 3.820%.
The closely watched inversion of the portion of the yield curve that measures the gap between two-year and ten-year bond yields is minus 46 bp.
Investors believe that the Fed will almost certainly keep rates at the current level following the results of the June meeting. Markets are also pricing in a rate cut in the second half of the year by about 84 basis points, with monetary policy easing fully priced into September futures, according to Fed Funds Futures.
The original message in English is available at the code: (Karen Brettell, translated by Tomasz Kanik)
2023-05-11 14:39:20
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