(Bloomberg) — Wall Street traders sent bonds and stocks down, with strong economic data reinforcing the view that the Federal Reserve isn’t ready to call victory over inflation just yet.
Most Read from Bloomberg
Treasuries came under renewed pressure on speculation that optimism regarding disinflation may have gone too far. In another sign that the world’s largest economy remains on solid footing, the Institute for Supply Management’s services gauge hit a four-month high while prices picked up. The news jolted trading on a day when investors were already digesting cautious views from some Fed speakers including Jerome Powell.
The “one-two punch” prevented market players from achieving further upside, according to Jose Torres at Interactive Brokers. JPMorgan Chase & Co. strategist Marko Kolanovic said that “absent a material shock, we think this year’s easing will prove more moderate than markets have priced.”
US 10-year…
