Bets on 2022 Fed Rate Hikes Dented as CPI Matches Expectations
- CPI annual inflation of 6.8% matches economists’ forecast
- Fed officials will meet to decide on policy next week
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Treasuries erased losses after keenly watched figures on U.S. inflation matched expectations, with traders paring their bets on rate hikes by the Federal Reserve.
Benchmark 10-year yields fell two basis points to 1.48%, after early rising as high as 1.52%. The move was mostly driven by a decline in inflation expectations, with the 10-year breakeven rate slipping four basis points to 2.45%. The real yields, or rates on Treasury Inflation-Protected Securities, rose above minus 1%.