Oil Drop Softens Rate Expectations
The drop in oil prices is softening rate-hike expectations, affecting U.S. Treasury yields.
Too little corroboration in the last 3 days to call a trend (22 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Federal Reserve Rate Hike Odds Fall As Amazon Prime Day Effect Hits Retail Sales"
"US Treasury yields declined, with the 2-year and 10-year yields falling 5 basis points and 4 basis points to 4.15% and 4.64%, respectively."
"July producer-price data suggested inflationary pressures at the wholesale level remained contained, prompting investors to scale back rate-hike expectations in September."
"Treasury yields eased, with the 10-year yield around 4.65 per cent, after data showed tame producer prices in July, generally coming in line with market forecasts and paring back expectations of US Federal Reserve rate hike next month."
"T-note prices received a boost from today's favorable PPI report. Also, the 10-year breakeven inflation expectations rate is down -1.0 bp to 2.255%."
"Wednesday's update on inflation pushed traders to pull back on bets the Fed will hike its main interest rate at its next meeting in September. Traders are betting on just a 38% chance of it, down from the coin flip's chance seen the day before. That helped pull the yield on the 10-year Treasury down to 4.65% from 4.70% late Tuesday."
"Treasury two-year yields fell four basis points to 4.17%. Money markets trimmed bets on a September Fed hike. The big surprise with a report that had no surprises is that a situation where inflation isn't reaccelerating, coupled with the most recent, weak jobs report gives the Fed more time to wait."
"That helped pull the yield on the 10-year Treasury down to 4.68% from 4.70% late Tuesday. Wednesday's update on inflation pushed traders to pull back on bets the Fed will hike its main interest rate at its next meeting in September."
"That helped pull the yield on the 10-year Treasury down to 4.68% from 4.70% late Tuesday...Traders are betting on a 40% chance of it, down from the coin flip's chance seen the day before, according to data from CME Group."
"Wednesday's update on inflation pushed traders to pull back on bets the Fed will hike its main interest rate at its next meeting in September. Traders are betting on just a 36% chance of it, down from the coin flip's chance seen the day before. That helped pull the yield on the 10-year Treasury down to 4.65% from 4.70% late Tuesday."