Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 4, 2025.
Brendan McDermid | Reuters
Key readings on inflation combined with two critical Treasury auctions this week offer a major test for the battered bond market.
On the inflation front, the Bureau of Labor Statistics releases separate reports for May — consumer prices on Wednesday, then producer prices on Thursday.
While economists are looking for only modest increases from both, any upside surprises could rattle investors wary of inflation pressures, primarily stemming from President Donald Trump’s tariffs, that could threaten the labor market and economic growth.
At the same time, the government debt sales, because they involve long-duration securities, will provide important clues about investor appetite for Treasurys at a time when debt and deficits are attracting increased attention both in financial markets and from economists. The…
