Short-end bond yields move higher after weak 30-year bond auction

Market Trends & Economic Outlook - The market is closely monitoring the Treasury's 30-year bond auction amid rising deficits and uncertain economic outlook [1] - Inflation metrics appear to be trending upward, with CPI and PPI data due next week [3] - Initial jobless claims are at a low level of 226,000, indicating a tame labor market [4] - Productivity remains solid at 2.4% despite a negative revision [4] Interest Rates & Bond Market - The 30-year bond auction caused a spike in rates, tailing by two basis points, indicating a higher yield [2][3] - Short-end yields are slightly higher, reflecting expectations of less aggressive easing [4] - Fed fund futures show a slightly decreased probability of a rate cut in September, still at 90% [4] Dollar Index - The dollar index is slowly turning up after a significant break following the jobs report [5] - The dollar index is struggling to gain speculative interest as long as it remains below 100 [6]