(Bloomberg) — A selloff in global bonds paused as traders waited for US inflation data to shed light on whether the Federal Reserve will be able to cut interest rates this year.
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Treasuries gained on Friday after a rout this week pushed yields to their highest levels of the year, with European rates following suit. Japan’s benchmark securities advanced after the nation’s central bank indicated monetary policy will stay easy for now.
Evidence is mounting that a slowdown in US consumer price growth toward the Fed’s 2% goal has stalled. That’s forced the market over recent weeks to push back the expected timing of the first rate to the end of this year, and unwind positions betting on a rally in fixed income assets.
“The jury is still out on whether this is a temporary blip or a significant inflation breakout,” said Justin Onuekwusi, chief investment officer at St James Place Management. “But if…
