Treasury Yields Ease as Fed Prepares for Next Move Amid Energy Price Pressures
U.S. Treasury yields eased slightly after the release of August's consumer inflation data, which showed prices rose 0.4% on the month and remained at 3.4% year over year.
The Federal Reserve will likely be paying close attention to this data as it prepares for its next policy decision, with markets currently pricing in a high chance of another rate hike.
On the foreign exchange front, the U.S. Dollar Index retreated from its post-CPI high and ended near the 99.00 area, while USD/JPY fell 0.54% to around 153.60 after briefly rising to 154.49.
The Bank of Japan is also set to make a decision on interest rates next week, with several research notes pointing to a 25 basis point increase that would take borrowing costs to their highest level in 31 years.