Bond Traders Eye Key Inflation Data to Plan Next Bets
- Ambiguous February labor market reports puts focus on CPI data
- Treasury yields have rallied since hitting 2024 highs in Feb.
The February Consumer Price Index report will be released Tuesday.
Photographer: Hannah Beier/BloombergThis article is for subscribers only.
This week, the US bond market faces its own Super Tuesday of sorts: the release of fresh inflation data investors will use to predict when the Federal Reserve will start cutting interest rates.
Following a somewhat mixed jobs report on Friday, investors see the upcoming February Consumer Price Index report, or CPI, as crucial to deciding whether to add to bullish Treasury wagers. Swaps traders see an interest-rate reduction beginning in June as a virtual lock, with nearly four quarter-point cuts expected over the coming year.