Treasuries Suffer Large Two-Day Loss as Fed Message Sinks In
- Yields have risen more than 20 basis points since Thursday
- For 10-year, two-day increase is biggest since June 2022
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Treasuries are headed for their biggest two-day loss in months as strong economic data reinforced the message of Federal Reserve officials including Chair Jerome Powell that interest-rate cuts are unlikely to begin before May.
Yields climbed at least 10 basis points — the five-year as much as 15 basis points to a year-to-date high 4.13% — after the ISM gauge of service-sector activity for January exceeded economist estimates. Friday was the US bond market’s worst day in nearly a year, with two- and five-year yields rising more than than 15 basis points after strong January employment data dashed hopes for a speedy pivot toward easier monetary policy.