Inflation not yet tamed, 10-year bond rates remain high

Inflation meanwhile is still not under control, in the United States but also in some European countries such as Germany. The latest American data, that of the personal consumer price index (+2.6% per annum in July and +2.9% in its core version adjusted for the more volatile components) keeps the cost of living pinned above the Federal Reserve's objectives: it probably does not jeopardise the 25-basis point rate cut expected in September, but it does cast a few more doubts on the subsequent moves of the central bank led by Powell. Weighed down also by ailing public finances, ten-year government bond rates consequently show no signs of letting up: they have been travelling for two years now between 4 and 5% in the United States and between 2 and 3% in Germany.