The probability of the Federal Reserve cutting interest rates by 25 basis points in September is over 80%.

Following the release of the CPI data, Treasury yields of all maturities fell sharply, with the two-year Treasury yield leading the decline, falling 6 basis points to 3.71%. Traders increased their bets on a Fed rate cut, predicting a greater than 80% chance of a 25 basis point cut at the Fed's September 17 meeting.