Bond Traders Surrender to Higher-for-Longer Reality From the Fed
- Treasury yields approach year’s highs amid sticky inflation
- Investors set up for fewer rate cuts ahead of policy meeting
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Bond investors who were once convinced that the Federal Reserve would start cutting interest rates this week are painfully surrendering to a higher-for-longer reality and a murky path forward for the market.
Treasury yields spiked in recent days and are on the cusp of setting new highs for the year as data continues to point to persistent inflation, which is causing traders to push back their timetable for US monetary easing.