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2025.12.1813:52:39UTC+00Treasury Yields Fall After Softer CPI Report

On Thursday, the yield on the US 10-year Treasury note decreased to 4.14%, close to its two-week low, as traders reacted positively to a CPI report for November that came in lower than expected. According to delayed data, US inflation dropped to 2.7% last month, with core inflation decreasing to 2.6%, marking its lowest point since 2021. Despite some uncertainty in the numbers due to the lack of October data following the government shutdown, consistent easing in price pressures could facilitate further rate cuts by the Federal Reserve next year. Currently, the markets estimate almost a 46% likelihood of a 25-basis-point reduction in the fed funds rate in March, with a 35% probability of another cut in July.

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