Central Banks
Bond Traders Brace for Inflation Data as Fed’s Powell Era Ends
A driver refuels a vehicle with regular gasoline at a Chevron gas station in Seattle, Washington, on April 30.
Photographer: David Ryder/BloombergInvestors are awaiting a key inflation report to gauge how long the Federal Reserve — under Kevin Warsh — can afford to hold interest rates steady as Middle East turmoil keeps oil prices elevated.
The bond market has been held hostage by oil prices as US-Iran clashes in the Strait of Hormuz threaten to fracture a monthlong ceasefire. Yields on 30-year bonds briefly touched 5.15%, the highest since July, before ending the week about 2 basis points lower at 4.94%.