PPI increase less than expected supports the Fed's aggressive rate cuts.

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ODAILY
08-13
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Odaily Odaily News: U.S. Treasuries rose as a weaker-than-expected U.S. Producer Price Index (PPI) report supported the Federal Reserve's more aggressive cuts in borrowing costs this year. The rise in Treasury bonds on Tuesday pushed the yield curve down by at least 4 basis points, with the two-year Treasury yield falling about 5 basis points to just below 4%, and the 10-year Treasury yield falling to around 3.9%. Jack McIntyre, portfolio manager at Brandywine Global Investment Management, said after the release of the weak PPI report, "You can breathe a sigh of relief." The PPI report kicked off a series of economic data releases this week. Consumer price and retail sales data will be released on Wednesday and Thursday, respectively, and are expected to help investors assess the magnitude and speed of potential interest rate cuts by the Federal Reserve. (Jinshi)

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