US Treasury yields fell on Tuesday ahead of the upcoming consumer inflation report for June. Analysts emphasize the importance of CPI data in the context of Trump's tariff policies.
Expectations for the CPI Report
The yield on 30-year bonds edged down to 4.958%, and that of 10-year bonds down to 4.419% amid expectations regarding consumer prices. Investors await the June CPI report, which, according to Wall Street analysts, may reflect the impact of Trump's tariffs.
Impact on Monetary Policy
Analysts from Eastspring Investments warn that a significant rise in inflation could lead to sell-offs in the bond markets. They also note that weaker CPI data might prompt the government to view tariffs as a revenue source to offset tax cuts.
Global Trends in Bond Markets
On the global debt market, especially long-term bonds, there is also notable pressure. Following Japan's elections and Trump's tariff announcements, investors are demanding higher compensation for financing rising defense budgets in other countries.
The June consumer price report is awaited with caution, as its results could significantly influence monetary policy and the overall market climate.
