US Treasury price fell, data shows core inflation easing before US-Iran war.

The price of U.S. Treasury bonds continues to decline, as previous data showed inflation last month meeting expectations, prompting traders to expect the Federal Reserve to cut interest rates at least once later this year. After the release of the report on Wednesday, the yield on the 2-year Treasury note, which is more sensitive to monetary policy, rose by about 1.5 basis points to 3.605%. Interest rate swap contracts linked to the Fed meeting dates show traders expecting a 34 basis point rate cut this year, slightly lower than the earlier expectation of around 35 basis points. The market continues to expect the Fed to cut rates by 25 basis points in September or October. Longer-dated Treasury bonds face more pressure, with the yield on the 10-year Treasury note rising by 2 basis points to 4.18%. Later on Wednesday, the U.S. Treasury will issue $39 billion in 10-year Treasury notes.