and weaken the dollar as the world’s reserve currency, Treasury Secretary Janet Yellen warned on Monday, May 8.
Yields on both T-bills slid later while longer-dated Treasury yields edged higher as investors waited for a reading of the US consumer price index on Wednesday, May 10, that may alter market speculation on when the Fed might cutThe market is focused on core CPI and if that remains elevated it would challenge the market’s belief that the Fed will cut rates sooner rather than later, said Kevin Flanagan, head of fixed income strategy at WisdomTree.
The 2-year Treasury yield, which typically moves in step with interest rate expectations, rose 1.2 basis points to 4.024%.MSCI’s gauge of global equity performance closed down 0.46% after customs data showedcontracted sharply in April, while exports rose at a slower pace, reinforcing signs of feeble domestic demand.
The Dow Jones Industrial Average fell 0.17%, the S&P 500 lost 0.46%, and the Nasdaq Composite dropped 0.63%.