Today’s market buzz

The 30-year Treasury yield kept climbing after the Fed's July 29 decision, touching 5.27%, its highest since 2007. Three FOMC votes for a hike, Q2 domestic demand at a two-year high, and oil up ~20% on the month lifted inflation expectations, warming pricing for a September hike. Yet June PCE just posted its first monthly decline since 2020. Cooling inflation and a long-end high share the frame, but the bond market trusts oil and demand. Whether 5.3% is a top or new floor sets August's anchor.