Bonds
Jobs Data Takes Inflation’s Place in Stoking Treasury Swings
- Labor market conditions may now be the Fed’s key policy driver
- Bond moves after CPI releases have become more subdued
The U.S. Treasury building in Washington, D.C.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Swings in the $29 trillion Treasury market have gotten smaller in reaction to fresh US inflation data, taking a back seat to labor market prints where volatility has accelerated.
Two-year Treasury yields increased by about 1 basis point as of Wednesday afternoon after November’s consumer price index came in line with economists’ estimates. An inflation print with no major surprises supported a muted response.