Treasury yields pulled back towards new lows after the release of inflation data. The yield of 10-year Treasuries moved below the 4.45% level, while the yield of 30-year Treasuries settled near 4.60%.
Falling Treasury yields put significant pressure on the U.S. dollar as traders have started to prepare for rate cuts in 2024. U.S. Dollar Index pulled back towards multi-week lows at 104.65.
Weaker dollar and lower Treasury yields provided material support to gold markets. Gold continued its rebound and climbed back above the $1960 level.
SP500 rallied as traders reacted to the reports. The end of the rate hike cycle is extremely bullish for stocks, so it’s not surprising to see that traders rushed to increase their long positions after the release of inflation data. Currently, SP500 is trying to settle above the resistance at 4475.
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