Treasury Yields Climb on Bets for June Fed Hike: Markets Wrap
- CPI climbed 0.5% in January, the most in three months
- Fed officials warn of more rate hikes and that end may be near
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The S&P 500 Index closed nearly flat and the two-year Treasury yield added more than 10 basis points after data showed that inflation remained high. Two Federal Reserve officials then warned that the remedy might require higher interest rates for a long period of time, though one policymaker suggested that the end might be near.
Swaps contracts showed traders gave near-even odds for a quarter-point rate increase by the Fed in June, following similar hikes in March and May. The rate-sensitive two-year Treasury yield rose past 4.6%.