Traders see 50-50 odds of the Federal Reserve raising rates by three-quarters of a percentage point in July, while economists at Barclays Plc and Jefferies LLC say this move could come as early as next week.
A hotter-than-expected inflation reading sent Treasury yields to multi-year highs on Friday, and flattened or inverted key parts of the US curve. Five-year rates surged to the highest in more than a decade, exceeding their 30-year counterparts for the first time in a month -- a signal to some investors that the central bank’s tightening may set off a recession.
