Related: ‘HYIH’ Bond ETF Built for Interest Rate Risk

Meanwhile, the consumer price index, a broad measure of Americans’ living expenses, rose 0.2% in July month-over-month. The modest rise in inflation could prompt the Federal Reserve to gradually raise rates instead of aggressively hiking rates to fight a runaway inflation.

“While CPI has become the market’s vernacular for generalized price moves, and it is a sound measure of current levels of inflation, for the Fed today the acronym may suggest something closer to Can’t Predict Increases, and thus the central bank will continue down its path of moving the federal funds policy rate a couple more times this year,” Rick Rieder, chief investment officer of fixed global income at BlackRock, said in a note.

For more information on the fixed-income market, visit our bond ETFs category.