Yield Curve Steepens as Treasury Yields Rise to 4.8%

The U.S. economy shows modest expansion in monetary aggregates with M2 rising 0.45% month-over-month, while inflation remains subdued with CPI up 0.07% and core CPI up 0.22% in July. The labor market steady at 4.1% unemployment suggests the Federal Reserve will hold rates at 3.63% into year-end. Treasury yields remain elevated with the 10-year at 4.8%, maintaining a positive yield curve 41 basis points above the 2-year yield.

Key Takeaways M2 money supply expanded 0.45% in July to 23,218 billion, signaling continued liquidity support from the Federal Reserve (FRED). CPI inflation rose 0.07% month-over-month to 332.813, with core CPI up 0.22%, staying within the Fed's comfort zone (FRED). The…