Treasury market reacts little to economic data

Market Reaction to Economic Data - Initial limited market reaction to hot PPI and tame claims data [1] - Market opinion diverges from Fed speak, prioritizing job numbers over inflation data [3][4] - Dollar index slid after weak jobs report and failed to recover, indicating market sentiment [4] Interest Rate Expectations - Two and ten-year Treasury yields initially rose following the hot PPI data, increasing by approximately 005% to 006% [2] - Market anticipates a rate cut in September, based on Fed fund futures [5] - Fed fund futures pricing of 55% or higher three to five sessions before a meeting typically leads the Fed to align with market expectations [4] Jobs Report Impact - Poor jobs report for July, including negative revisions, had a significant impact on the market [3] - Market reaction to the jobs report was more pronounced than the reaction to inflation data [3]