The yield on the US 10-year Treasury note fell to the 3.9% level, retreating from the 8-month high of 4.05% touched on July 7th as a faster-than-expected slowdown in consumer inflation eased the extent of remaining tightening by the Federal Reserve. Headline inflation fell to 3% in June, compared to market expectations of 3.1%, while core consumer prices increased the least since February 2021 on a monthly basis. Still, the US central bank is widely expected to resume its tightening cycle in its upcoming meeting this month before holding rates unchanged until the end of the year.
