The US CPI for August is scheduled to be released on Wednesday, with inflation expected to rise 0.6%.
The US two-year yield, which rises with traders’ expectations of higher Federal Reserve rates, climbed 5.0033% compared with a US close of 4.984%.
The US Consumer Price Index for August is due out on Wednesday. Inflation is expected to rise 0.6% month-on-month for August, which would take the year on year rate to 3.6%, according to a Wells Fargo research note. “The extent of monetary restraint in the economy encourages us to think that it will decelerate, not reaccelerate, from here.”
China also had its smallest drop in factory prices in five months. The producer price index fell 3.0% from a year earlier, in line with expectations, after a drop of 4.4% in July.
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