(Bloomberg) — Stocks hovered near their all-time highs as tech rallied, with Treasury yields sinking on bets the Federal Reserve will cut rates this year amid signs of disinflation.
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Equities rebounded after a brief drop, with the S&P 500 heading toward its fourth consecutive record. Treasuries climbed across the curve, with 10-year yields on track for their lowest since March. A $22 billion sale of 30-year debt saw strong demand. Heightened political risk in France drove the premium on the nation’s 10-year bonds to the widest since 2017 over German peers.
The producer price index unexpectedly declined the most in seven months, adding to evidence that inflationary pressures are moderating. Several categories that are used to calculate the Fed’s preferred inflation measure — the personal consumption expenditures price index — were softer in May than a month earlier.
“The latest data in hand nudge the…
