Bond Market Decrees Inflation Readings Will Let Fed Skip Rate Hike in June
- Bond market convinced inflation read will let Fed skip June
- A July rate increase is still seen as more likely than not
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The bond market is overhauling its bets on the path of US interest rates the day before the Federal Reserve concludes its pivotal monetary-policy meeting.
Short-term Treasury note yields jumped to the highest since March amid waning expectations that the central bank will cut rates this year. Traders also adjusted their view on Wednesday’s key Fed decision, signaling higher conviction that officials will leave rates steady after data showed consumer-price gains last month were in line with forecasts.