Bonds
Bond Traders See Quarter-Point Cut Next Month as Inflation Ebbs
- Traders see about 32 basis points worth of easing by September
- Treasury yields mainly lower on Wednesday after CPI report
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Bond investors reinforced their bets that Federal Reserve officials will cut interest rates by a quarter-point in September as US inflation continues to ebb.
Traders are pricing in 32 basis points worth of easing at the Fed’s September gathering, trimming their expectations from a day earlier — and lowering the odds of a half-point cut at the next central bank meeting to about one-third. Treasuries mostly gained on Wednesday, pushing yields lower beyond the five-year sector.