Treasuries Slide as Nervous Traders Look Ahead to US Inflation
- US two-year yield climbs to 4.27% after earlier drop to 3.82%
- US to report CPI Tuesday, which will influence Fed hike bets
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Treasuries swung to a loss Tuesday, a sign of traders’ heightened sensitivity to news on the health of the banking system ahead of key inflation data that may determine the Federal Reserve’s next move.
Two-year yields took a huge round trip, initially climbing to 4.19%, then plunging to 3.82% before surging again to 4.27%. That comes as markets resume bets on a potential Fed interest-rate hike next week, having briefly erased all tightening wagers on Monday.