Softer-than-expected US inflation data drove a decline in Treasury yields, while equity markets showed a mixed performance across the Atlantic. US June PPI came in below expectations, following the previous day’s soft CPI, while Fed officials struck a hawkish tone but signalled patience, prompting a repricing of Fed rate expectations, with the probability of an additional hike declining to around 40%. US Treasury yields declined, with a flattening of the curve led by the short end.