The US July inflation report showed that overall inflation was slightly higher than Wall Street expectations, mainly driven by a 1.2% increase in financial services and insurance fees, which was the largest single increase in the report. Meanwhile, gasoline prices fell by 2.7%, furniture and appliance prices decreased by 0.9%, and overall goods prices fell by 0.1%. The core inflation data, which the Federal Reserve focuses on, met market expectations. Income grew by 0.4% and spending grew by 0.2% during the month. Currently, 10-year and 30-year US Treasury yields are still hovering at their highest levels since 2007. Traders are pricing in a one-third chance of a Federal Reserve rate hike in September, with a higher probability of a hike in December.