Bonds rally as US prices remain flat
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.FIGURES in the US yesterday pointed to steady prices in the economy, sparking a sharp rally in bond and share prices but failing to dent expectations that short-term rates are set to rise, writes Peter Torday.
The rally came after the US producer price index, a measure of price changes at the wholesale level, fell 0.1 per cent in April and was 0.4 per cent below its level a year earlier. Excluding volatile prices for food and energy, prices rose by 0.1 per cent during April, the third successive month that wholesale prices have been virtually flat on this basis.
Retail sales fell unexpectedly in April, contracting by 0.8 per cent. But an earlier increase in March was revised up sharply and, together with recent evidence of strong growth in employment, still suggests robust expansion.
Yields on US Treasury bonds tumbled to 7.52 per cent from 7.64 per cent. But a more durable rally will have to await today's consumer price index for April for further confirmation that inflation was convalescing last month.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments