Market Sees Green as Soft Inflation Data and Falling Oil Prices Boost Sentiment

The market is off to a strong start this morning, buoyed by a series of positive economic indicators. The Department of Labor reported that the producer price index (PPI) for final products remained unchanged in July, falling short of the expected 0.1% increase.

This news was accompanied by a decline in oil prices, which fell around 2% following a warning from the International Energy Agency (IEA). The IEA stated that global crude oil demand this year is set to fall more than previously expected, leading to a decrease in traffic through the crucial Strait of Hormuz.

The benign inflation data and falling crude oil prices also had an impact on bond yields, which declined across the board. The yield on the benchmark 10-Year U.S. Treasury Note fell by 2 basis points, while the yield on the short-term 2-Year U.S. Treasury Note and long-term 30-Year U.S. Treasury Note both fell by 2 and 1 basis points respectively.