Treasury yields slip after in-line U.S. CPI cools Fed hike bets

U.S. inflation data reduced expectations of a near-term Federal Reserve rate increase, pushing Treasury yields lower and supporting record-high equity indexes even as oil-market risks linked to the Strait of Hormuz remained a counterweight. July consumer prices rose 0.1% and producer prices were unchanged, leading Fed Funds futures to price roughly a two-thirds to nearly 70% chance of no change in September, up from about 56% a week earlier.

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