Bonds
Fed Traders Eye CPI After Jobs Data Boost Odds of a May Hike
- Treasury short-end yields advance as central bank bets shifted
- Consumer price index expected to show moderating inflation
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Bond traders are betting that the Federal Reserve probably has one more interest-rate hike to go in this tightening cycle as the economy shows resilience — for now at least — despite recent banking turmoil.
Treasury yields advanced in a holiday-shortened session Friday after a drop in US unemployment and stronger-than-anticipated payrolls figures provided support for another quarter-point rate increase at the next Fed meeting in May. Swaps now show the odds of that at around three-in-four