Treasury Investors Ramp Up Bullish Positions Ahead of CPI Data

Investors have been aggressively taking bullish positions on US Treasuries in anticipation of the upcoming Consumer Price Index (CPI) data release. This move reflects the market's expectation that recent softer-than-expected economic data may prompt the Federal Reserve to cut interest rates in September and further ease monetary policy in the coming months. The prevailing sentiment suggests that investors are betting on a potential slowdown in the pace of interest rate hikes by the Fed, which could be driven by signs of moderating inflationary pressures. This speculation has fueled increased demand for US Treasuries, leading to a surge in bullish positions as investors seek to capitalize on the anticipated changes in the Fed's monetary policy stance. The article highlights the market's focus on the upcoming CPI report, which will be closely scrutinized for clues about the Fed's future actions and the overall trajectory of the US economy.