Investors Watch as Inflation Wavers

After breaching 3% this week, the 10-year Treasury yield has fallen back down to 2.97% after a weak inflation reading signaled the Federal Reserve won’t be forced to step up the pace of interest rate increases. U.S. data showed costs for big-ticket items such as cars and airfares actually declined last month, reducing chances that inflation will run significantly over the Fed’s 2% target. Investors have been focusing more and more on inflation as the economy continues to do well.