U.S. Treasury Yields Fall 14bp to 4.14% as Fed July Rate Hike Bets Drop to 20%

According to Jin10, U.S. Treasury yields fell sharply today following weaker-than-expected consumer price data. The two-year yield dropped 14 basis points to 4.14%, marking its largest single-day decline since February. Traders have significantly reduced bets on a Federal Reserve rate hike in July, with rate swap markets showing the probability falling from over 40% to approximately 20%. Fort Washington Investment Advisors' senior portfolio manager Dan Carter commented that the data confirms expectations for the Fed to hold rates steady.
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