Bond Investors Await Inflation Data That Could Sway Fed Choice
- November CPI key as strikes and hurricanes distort labor data
- Fed officials are in pre-meeting communication blackout period
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Bond traders are on high alert for a fresh dose of inflation data out on Wednesday that could determine whether Federal Reserve officials cut or hold interest rates next week.
A mixed November jobs report helped to send two-year Treasuries lower for back-to-back weeks, and traders have subsequently raised their odds for a December rate reduction to almost 80% — but the reading on November’s consumer prices remains crucial.