ORLANDO, Florida, April 26 (Reuters) – The latest figures showing the surprising – some would say alarming – durability of U.S. inflation are also re-focusing the spotlight on the source and strength of demand for U.S. Treasuries.
Bonds are getting crushed and yields are hitting their highest levels in almost six months, as investors scramble to price in the possibility that the Federal Reserve may not cut interest rates at all this year.
Inflation, as measured by the core personal consumption expenditures price index, was 3.7% in the first quarter, well above the 3.4% consensus forecast. The 1.7 percentage point acceleration from the previous quarter was the third fastest rise in more than 30 years.
The two-year Treasury yield leapt back above 5.00% for the first time since November, the 10-year yield is up 50 basis points in under a month, and the bellwether iShares 20+ Year Treasury Bond exchange-traded fund is down 10% this…
