Key Events
Latest Updates
By
Emese Bartha, Dow Jones Newswires
A downside surprise in U.S. CPI data gave only a small boost to Treasurys, probably because tariff-driven price hikes still look imminent, said Capital Economics’ James Reilly in a note.
That said, these price hikes look discounted in markets, shielding Treasury yields from rising pressure, the senior markets economist added.
“We don’t expect much upwards pressure on Treasury yields even as the inflationary impact of tariffs eventually feeds into U.S. consumer prices,” he said.
Capital Economics expects core inflation to rise in coming months but it thinks that investors are already braced for a broadly similar outcome on tariffs, he said.
