TechFlow, Aug. 28 — According to Jinshi Data, U.S. short-term Treasury prices edged lower after strong economic growth and employment data slightly weakened market belief that the Federal Reserve would cut interest rates twice before year-end. U.S. second-quarter GDP growth was revised up from 3% to 3.3%, exceeding economists' expectations.
Following the data release, yields on two- to five-year Treasuries rose at least two basis points to daily highs. Meanwhile, initial jobless claims fell more than expected, signaling strength in the labor market. Societe Generale's head of U.S. interest rate strategy, Subadra Rajappa, said: "The data continues to show that consumers remain resilient despite tariff uncertainties." Rajappa noted that the front end of the Treasury yield curve is feeling the 'tug' over whether the Fed should cut rates in September. She added that while Fed Chair Powell "leans toward a more dovish stance, data continue to undermine the need for rate cuts."
