Treasury Yields Fall as Fed Meeting Approaches and Economic Data Influences Rate Cut Expectations
Treasury yields are down today as markets await the Federal Reserve's upcoming meeting, where a rate cut is expected. The 2-year Treasury yield dropped to 3.572%, the 10-year to 3.640%, and the 30-year to 3.955%. Recent U.S. economic data, including August's consumer price index (CPI) rise of 0.2% and a core CPI increase of 0.3%, along with a 0.2% rise in the producer price index (PPI), has influenced rate cut speculation. Jobless claims, reported at 230,000, exceeded forecasts but did not indicate severe labour market issues. The CME FedWatch tool shows a 57% chance of a 25-basis-point cut and a 43% chance of a 50-basis-point reduction. The Fed's meeting, starting Tuesday and concluding Wednesday, will provide further clarity. Investors are also watching for import price and consumer sentiment data due today, which could impact future market expectations.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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