Ice Cold Producer Inflation Data Sparks Economist Reactions: 'More Data In The Correct Direction'
Portfolio Pulse from Piero Cingari
The Producer Price Index (PPI) for May showed a significant drop of 0.2%, driven by a 4.8% fall in energy prices. This data, along with lower-than-expected consumer inflation, has led economists to believe that the Federal Reserve may consider rate cuts later in 2024. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has seen a positive impact, rising by 1.8% this week.
June 13, 2024 | 2:51 pm
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The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has risen by 1.8% this week, driven by lower-than-expected PPI data and increased expectations of Fed rate cuts later in 2024.
The significant drop in PPI, particularly in energy prices, has led to increased market expectations of Fed rate cuts. This has positively impacted bond yields, benefiting TLT.
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