For Bond Traders, Data Matter More Than What the Fed Is Saying

  • Treasuries rally as soft inflation data bolsters rate-cut bets
  • Fed expectations downplayed as economy keeps defying forecasts
Powell: Current Stance of Fed Policy Is 'About Right'
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The US bond market is driving home a lesson about the new world investors are living in: The data matter far more than anything the Federal Reserve might say.

That was on stark display Wednesday, when a softer-than-expected rise in the consumer price index that morning set off one of the biggest Treasury rallies of the year.