June, Inflation
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The U.S. bond market sold off on Tuesday in a manner that tends to spell fresh trouble for many stock investors. The selloff in Treasurys sent the yield on the 30-year bond to almost 5.02% and its highest closing level since May 23.
Mortgage rates are based on bonds and bonds don't like inflation. When inflation reports are higher than the market expected, rates tend to rise, all other things being equal. But today's inflation numbers were a bit lower than the median forecast.
Fears earlier this year that President Donald Trump’s tariffs would result in a sharp inflation spike have completely receded.
Grocery chain Albertsons Cos. reported fiscal first-quarter results early Tuesday, with the grocery chain explaining why tariff-related inflation has not yet hit its customers. But it acknowledged that at some point,
UBS expects the US economy to slow significantly in 2025, projecting real GDP growth to fall to around 1%. In a note to clients issued Tuesday, the bank pointed to a combination of fading fiscal support, elevated interest rates, and persistent inflation as key drivers of the expected deceleration.