Bond Market Jolted as Retail Sales Slump Complicates Fed’s Task
- Consumer spending slowdown is counterpoint to sticky inflation
- Options traders wager on a rebound in Treasury yields
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The bond market was jolted Thursday by weaker-than-expected January retail sales data that bolstered expectations for Federal Reserve interest-rate cuts starting in June.
Treasury yields retreated further from year-to-date highs reached Tuesday, but failed to sustain the move amid lingering doubts about the potential for sticky inflation to delay rate cuts.