Bond Traders See 4.5% Yields as Next Test as Focus Shifts to CPI
- Inflation figures come on heels of surprisingly big job gains
- Yields hit new yearly highs amid renewed inflation worries
A shopper on 5th Avenue in New York.
Photographer: John Taggart/BloombergThis article is for subscribers only.
There’s one hope left for bond traders burned by this year’s selloff: a sign that the Federal Reserve is gaining the upper hand in its fight against inflation.
The surprisingly strong US economy has driven Treasury yields to the highest since late November as investors dial back bets on interest-rate cuts, wagering that policymakers will be wary of easing policy prematurely. The market took another leg downward on Friday after data showed that US payrolls unexpectedly expanded in March by the most in nearly a year.