The preliminary University of Michigan Consumer Sentiment Index for July 2025 showed an increase to 61.8, surpassing the forecast of 61.5 and the previous reading of 60.7. The Current Conditions Index rose to 66.8, above the expected 63.9 and the prior 64.8, while the Expectations Index climbed to 58.6, exceeding the forecast of 56.9 and the previous 58.1. Inflation expectations for one year declined to 4.4%, below the forecast and previous level of 5.0%. Similarly, the five-year inflation outlook dropped to 3.6%, under the anticipated 3.9% and the prior 4.0%. In the Treasury market, the Federal Reserve received $268.8 million in bids for four-week Treasury bills, with the yield slightly rising to 4.245% from 4.230%. A $21 billion auction of 10-year Treasury Inflation-Protected Securities (TIPS) saw stable demand, primarily from investment funds, with a high yield of 1.985%, down from the previous 2.220%. The auction allotment was 75.33%, with indirect bidders receiving 62.7%, direct bidders 32%, and dealers 5.36%, indicating continued strong interest from asset managers and investment firms.