(Bloomberg) — Wall Street grappling with another mixed economic report sent Treasuries down, with traders betting the Federal Reserve will signal patience before it decides to cut interest rates this year.
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Yields rose across the US curve as data showed personal spending topped estimates — even as the Fed’s preferred gauge of underlying inflation slowed to an almost three-year low. With policymakers telegraphing they want to see sustainable signs of cooling before lowering borrowing costs, the figures only reinforced bets that a March pivot is still very much elusive at this stage.
It’s not that investors have abandoned their bets on a rate cut in the first quarter, but they continued to fully price in a move in May. Of course, that’s all going to hinge upon the next several economic reports, with the impacts from the disruptions in shipping yet to be seen. As Jerome Powell and his colleagues gather…
