Bonds

US Bonds Drop as Data Pushes Traders to Curb Fed Rate-Cut Bets

The US Treasury building in Washington, DC.

Photographer: Joshua Roberts/Bloomberg
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Treasuries fell after better-than-expected data on US factory activity caused investors to slightly curb their bets on US interest-rate cuts this year.

The declines on Thursday sent yields up across maturities after a report showed US manufacturing activity shrank in April amid President Donald Trump’s tariffs — albeit at a pace that some on Wall Street saw as not so bad. Two-year yields, most sensitive to the Federal Reserve’s policy, rose as much as about 12 basis points on the day.