Treasury Yields Dip as Traders Await September CPI — SkimNews
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- 10-year Treasury yield fell 2 basis points to 5.195%, while the 30-year Treasury yield dropped 1 basis point to 5.549%
- 2-year Treasury note yield also declined 2 basis points to 4.772%, marking a parallel move across the curve
- September CPI report is expected to show headline inflation rising 0.6% on the month and 3.6% on an annual basis, per Dow Jones economist poll
- Core inflation is projected at 0.2% monthly and 2.5% annually, both above the Federal Reserve's 2% target rate
- Deutsche Bank analysts noted the CPI release lands just two weeks before the Fed's next interest rate decision, and the PCE reading — the Fed's official inflation gauge — won't arrive until the day after that meeting
- Investors also face a Thursday data slate including the September producer price index, retail sales, and initial jobless claims
Why it matters: With headline CPI expected at 3.6% annually against the Fed's 2% target, the report carries outsized weight: it arrives two weeks before the next Fed meeting, and the Fed's preferred PCE reading won't surface until after that decision, making Wednesday's CPI the last major inflation data point to shape the pre-meeting narrative.
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