Traders Slash Fed Bets After Data; Key Yield Inversion Deepens
- Front-end yields fell after slower-than-expected wage growth
- Market sees Fed hiking cycle peaking somewhere below 5%
This article is for subscribers only.
US short-term yields slumped Friday as slower-than-anticipated wage growth and an unexpectedly weak services-sector indicator prompted traders to trim expectations for just how high the Federal Reserve might push its overnight benchmark.
The moves reversed the previous day’s bond-market selloff and came even as job growth and the unemployment rate for December were better than expected.