Traders cut their expectations for a Fed rate cut after the release of the US CPI data. Chris Anstey, an analyst, said it was worth noting that the annual rate of US CPI inflation in July had now fallen below 3 per cent, the lowest since inflation first ignited in the spring of 2021. The initial volatility in the market was not large. US 2-year Treasury yields are now up more than four basis points, indicating some disappointment that the inflation data has not become more muted.