Treasury prices continued their march higher as yesterday’s risk-off sentiment spilled over to today. Global equity markets sold off after news that President Trump was going to double the level of tariffs placed on Turkish steel and aluminum. July’s CPI number came in as expected at 0.2% month over month, or 2.9% year over year. Core CPI which exclude food and energy, due to their more volatile nature, came in slightly higher than expected at 2.4% year over year vs 2.3%. These readings should strengthen the case that the Fed can maintain its gradual rate hikes.
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