Treasuries Rally as Inflation Data Brings Respite: Markets Wrap

Treasuries advanced as US inflation data that showed price pressures rose in line with estimates, reinforcing the view that the Federal Reserve will be able to cut interest rates next month.

Contracts on both the S&P 500 and Nasdaq 100 futures were litte changed after a brief uptick immediately after the CPI report. Rate-sensitive two-year Treasury yields tumbled 9 basis points, reversing some of the moves that had sent them to their highest levels since July. An index of the dollar dropped 0.2%, slipping off two-year highs.

“Markets should take some comfort from this, as it represents just the ...