10-year Treasury yield drops to 4.55% after cooler June CPI
What's new: Traders cut the odds of a July Fed rate hike to 17% from 42%, though September tightening is still seen as more likely.
U.S. Treasury yields fell Tuesday after a softer-than-expected June inflation report eased near-term pressure on the Federal Reserve to raise rates again. The 10-year Treasury yield was down 6 basis points at 4.553% by 8:33 a.m. ET, while the 2-year yield fell 8 basis points to 4.181% and the 30-year bond yield slipped 3 basis points to 5.064%. The consumer price index fell 0.4% in June, bringing the annual inflation rate to 3.5%, below the 3.8% economists polled by Dow Jones had expected. CME FedWatch showed investors sharply lowered the chance of a quarter-point July hike, but still priced in roughly 60% odds of a higher target rate by September.