US bond market avoids big rate bets as inflation dims Fed outlook

US bond market avoids big rate bets as inflation dims Fed outlook

CPI data cooler than expected in mid-July has sent US Treasury yields below 4.50%, reducing Fed rate hike expectations and lowering the opportunity cost of risk assets including tech equities. Institutional capital now rebalances toward higher-risk allocations when bond yields fall—a macro signal affecting portfolio strategy and SaaS/AI startup valuations.