Treasury futures climb and yields pull back as recent U.S. inflation data hints at a potential pause in Federal Reserve rate hikes. July's Producer Price Index (PPI) comes in flat, following a benign Consumer Price Index (CPI) report, sending expectations for a September rate hike below 40%. Meanwhile, the Treasury market digests significant supply, with a 42 billion 10-Year Treasury auction drawing the highest yield since 2007 at 4.683%. A subsequent 25 billion 30-Year bond auction attracts average demand with a 5.216% high yield, as investors continue to demand higher compensation to finance the U.S. government.
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