After the CPI data met expectations, the downward trend in US Treasury yields and the US dollar became more obvious, while SOFR futures yields fell 4-5 basis points on the same day. Clearly, traders were prepared for higher-than-expected data. Traders are still expecting interest rate hikes this year, but they continue to reduce the possibility of a September rate hike.

After the CPI data met expectations, the downward trend in US Treasury yields and the US dollar became more obvious, while SOFR futures yields fell 4-5 basis points on the same day. Clearly, traders were prepared for higher-than-expected data. Traders are still expecting interest rate hikes this year, but they continue to reduce the possibility of a September rate hike.