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 US inflation report to gauge how long a 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 crude costs as US-Iran clashes in the Strait of Hormuz threaten to fracture a monthlong ceasefire. Treasury two-year yields rose four basis points to 3.93% as oil climbed after the US and Iran rejected proposals aimed at ending the conflict.