Traders See Almost No Chance of Fed Cut This Month After Data
A television station broadcasts Jerome Powell speaking on the floor of the New York Stock Exchange on Dec. 10.
Photographer: Michael Nagle/BloombergBond traders all but wiped out their bets that the Federal Reserve would cut interest rates later this month after the unemployment rate for December fell more than expected.
A resulting selloff in short-maturity Treasuries — more sensitive than long-maturity tenors to Fed rate changes — lifted the two-year note’s yield by nearly five basis points to the highest level this year. Bond traders maintained an outlook for two rate cuts overall in 2026, with the first seen by mid-year.