Bond Yields Rise on Bets Fed ‘Not Rushing’ to Ease: Markets Wrap
- US December personal spending topped economist estimates
- Fed’s preferred core price gauge cooled to lowest since 2021
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Wall Street grappling with mixed economic data sent Treasuries down, with traders betting the Federal Reserve will signal patience before it decides to cut interest rates this year.
Bond losses were led by shorter maturities as data showed personal spending topped estimates — even as the Fed’s preferred gauge of underlying inflation slowed to an almost three-year low. With policymakers telegraphing they want to see sustainable signs of cooling before lowering borrowing costs, the figures only reinforced bets that a March pivot is still very much elusive.