Traders Heed Central Bank Pushback Against Bold Rate-Cut Bets
- Traders temper bets on ECB, BOE, Fed policy easing this year
- Strong UK inflation, US retail sales data drive repricing
This article is for subscribers only.
Traders in the world’s largest bond markets are heeding warnings from central banks and winding back bets on aggressive interest-rate cuts this year.
Investors once virtually certain that the Federal Reserve would kick off an easing cycle in March now see the odds as no better than a coin toss. And Treasury yields have risen across the board after Governor Christopher Waller pushed back on the aggressive rate-cut bets — saying policymakers should move carefully — and a bigger-than-expected jump in US retail sales Wednesday underscored the economy’s strength.