Treasuries Climb as Benign US Inflation Eases Bets on a Fed Hike

Short-term Treasuries jumped after a benign reading of the Fed’s preferred inflation gauge nudged down expectations for an interest-rate hike in the coming months. The move reflects a softer policy outlook and lower near-term rate pressure, with the biggest impact concentrated in front-end bond markets rather than equities.

Analysis

Short-term Treasuries jumped after a benign reading of the Fed’s preferred inflation gauge nudged down expectations for an interest-rate hike in the coming months. The move reflects a softer policy outlook and lower near-term rate pressure, with the biggest impact concentrated in front-end bond markets rather than equities.