Cooling US Inflation Pulls Euro Zone Yields Lower as Fed Cut Odds Firm
July CPI moderation drives a synchronized bid across European sovereign debt, while Goldman Sachs pencils in a 0.23% core PCE print — reinforcing the disinflation narrative underpinning risk assets.
Softer-than-feared July US inflation data triggered a decline in euro zone bond yields as global rate expectations reset lower. Goldman Sachs projects core PCE at +0.23% month-on-month, consistent with a gradual return toward target and supportive of a policy easing path.
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