Treasury Yields Rise After Resilient Data Suggests Measured Fed
- Traders trim odds of a 50bp rate cut in September to about 25%
- Market holds out for at least one large reduction in 2024
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US Treasury yields climbed after resilient economic reports prompted traders to slightly trim their expectations for the scope of Federal Reserve easing this year.
Yields were some 3 basis points higher across maturities after the second quarter US GDP growth rate was unexpectedly revised higher and weekly initial jobless pointed to a steady employment sector. An inflation gauge in the GDP report also increased, though a measure of core prices for personal spending was revised down.