Traders Trim Fed-Cut Bets as Wholesale Inflation Clouds Outlook

Wall Street traders dialed back expectations for an interest-rate cut next month, sending Treasury yields higher, after fresh data on wholesale prices signaled tariffs are pushing up inflation.

Yields on short-term Treasuries, which tend to track expectations for monetary policy, rose sharply Thursday, with the two-year note climbing six basis points to 3.73%. The benchmark 10-year yield jumped and the dollar gained against a basket of peers.