(Bloomberg) — Treasuries are headed for their biggest two-day loss in months as strong economic data reinforced the message of Federal Reserve officials including Chair Jerome Powell that interest-rate cuts are unlikely to begin before May.
Yields climbed at least 10 basis points — the five-year as much as 15 basis points to a year-to-date high 4.13% — after the ISM gauge of service-sector activity for January exceeded economist estimates. Friday was the US bond market’s worst day in nearly a year, with two- and five-year yields rising more than than 15 basis points after strong January employment data dashed hopes for a speedy pivot toward easier monetary policy.
The yield increases since Thursday are the biggest over a two-day period in months, at least. For the benchmark 10-year note, higher by about 27 basis points, it’s the most since June 2022, when it became clear the Fed was on the brink of a faster pace of…
