US Treasury yields set for monthly loss as markets wait on key Fed inflation data
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Treasury yields stayed still on Friday while traders waited on fresh inflation figures and followed President Donald Trump’s ongoing legal push to keep his reciprocal tariffs alive. The numbers barely moved — the 30-year yield ticked up by less than a basis point to 4.927%, while the 10-year yield sat flat at 4.422%, and the 2-year held at 3.939%. But the lack of movement doesn’t mean the market’s calm. The Federal Circuit Court of Appeals on Thursday sided with the White House, agreeing to freeze a ruling from a lower trade court that had overturned the reciprocal tariffs, which first kicked in back in April. That legal win came just hours before the Trump administration told the court it would go to the Supreme Court if the pause wasn’t granted. Trump pushes tariffs, market waits for Fed Trump’s team isn’t stopping with the courts. Officials are also working on a backup — using a section of the Trade Act of 1974 to roll out temporary tariffs up to 15% for as long as 150 days, The Wall Street Journal reported. That plan alone has added a new layer of stress to a market already dealing with inflation risk, weak data, and deficit fears. And all of it is happening as Wall Street watches for the personal consumption expenditures (PCE) index, the Federal Reserve’s top inflation metric, which dropped Friday morning. Traders want a clear sign that spending and inflation are slowing, something that could boost the case for rate cuts later this year. Current pricing suggests around 50 basis points in cuts are expected by December. But until then, Treasuries are heading toward their worst monthly performance this year. A Bloomberg bond index tracking US government debt fell 1.2% in May, as bond prices slipped and yields rose across all…
Filed under: News - @ May 30, 2025 12:26 pm