US Treasury yields ease as traders trim Fed rate hike bets after inflation data

US Treasury yields pulled back Wednesday as traders reduced expectations for a Federal Reserve rate hike in October, following August inflation data that came in below economist forecasts. Futures markets shifted to price in less than a 50-50 chance of an October rate increase after the report, though traders still fully anticipate a Fed rate hike by December. The adjustment reflects market reaction to cooling inflation pressures, with investors now weighing the timing of future monetary policy moves against evolving economic data.