Inflation breakeven rates, which reflect market expectations of the inflation outlook, all jumped after the release of the August CPI data. The two-year breakeven rate rose to 2.43%, while the 5-year breakeven advanced to 2.60% and the 10-year rate was 2.44%, according to Bloomberg data. The jumps reflect the unexpected upside surprise of the August CPI, but were still less than the advances seen in nominal Treasury yields, which soared on Tuesday in anticipation of future Fed rate hikes, according to Ben Emons, managing director of global macro strategy at Medley Global Advisors in New York. The substantial rise in Treasury yields was led by the 1-year yield, while all three major U.S. stock indexes DJIA,
EURUSD weekly forecast: euro still has decent prospects
Expectations for a Federal Reserve rate cut in September remain high despite the July PPI spike in the US, which slightly reduced the odds of