Traders raise expectations of a Fed rate cut in September. Two-year US Treasury yields lead the decline.

US Treasury yields rose as traders increased their expectations for a rate cut by the Federal Reserve in September, and the previously released Consumer Price Index largely met expectations. Yields on various maturities of US Treasuries generally fell, with the two-year yield leading the decline, dropping 6 basis points to 3.71%. Traders increased their bets on a rate cut by the Federal Reserve, with the probability of a 25 basis point cut at the September 17 meeting exceeding 80%. The US Consumer Price Index rose 2.7% year-on-year in July, while the core CPI, which excludes food and energy, rose slightly to 3.1%. After the data was released, the US dollar fell against a basket of currencies.