21.08.202514:35:59UTC+0010-Year Yield Rebounds on Hot Data

The yield on the 10-year US Treasury note climbed to 4.33% on Thursday, following data indicating elevated prices and a resilient economy. This development bolsters the position of hawkish members within the Federal Open Market Committee (FOMC). The S&P Purchasing Managers' Index (PMI) reached its highest point this year, reflecting strong growth in new business activities. Furthermore, the survey revealed that increased input costs have led companies to raise selling prices at the steepest rate in three years. This aligns with the three-year peak in the inflation gauge as reported by the Philadelphia Federal Reserve. Earlier, minutes from the FOMC's most recent meeting highlighted a prevalent view among policymakers that inflationary threats outweigh concerns about a weaker labor market, along with an acknowledgment that inflation expectations face the risk of becoming unanchored. Nonetheless, labor market issues persist, as the positive labor trends noted in the S&P report were counterbalanced by a rise in continuing jobless claims reported by the Department of Labor, which is now at its highest level since 2021. Tomorrow, Federal Reserve Chair Jerome Powell is expected to deliver a keynote speech, which may provide insights into future rate policy directions.