Bond Traders Nix Fed Cut Bets Ahead of US Inflation Data
- Swaps traders price in less than 50 basis points of 2024 cuts
- Treasuries are down so far this month after a string of gains
This article is for subscribers only.
Bond traders who are starting to wager on further declines in the US Treasury market are turning to a key inflation report for clues on the pace ahead for Federal Reserve interest-rate cuts.
Strong job-creation data spurred a selloff in the bond market late last week, pushing yields higher as investors ditched bets that policymakers will deliver another half-point rate reduction this year. With concern over US employment subsiding, investors are now looking to Thursday’s inflation reading for signs price pressures are under control.