Treasury yields are lower today as investors digest the latest economic news showing inflation is cooler than anticipated. Yields were down across the board as I write:
30yr – 4.822%
10yr – 4.233%
2yr – 3.681%
Thursday, we anticipate the release of the Producer Price Index (PPI) figures at 8:30 EST. This data will provide crucial insights into how much producers charge wholesalers or retail customers for their products. Additionally, the upcoming Fed meeting in Jackson Hole from August 21 to August 23 is a key event on the horizon. Investors are speculating about a potential rate cut in September. If inflation remains stable, we can expect yields to continue their downward trend, offering potential for further decreases.
Despite falling Treasury yields, the municipal bond market still offers significant value. A substantial influx of new issues has prevented a steep drop in municipal bond yields offering attractive levels across the curve.
