The world’s biggest bond market came under pressure and stocks erased gains after solid US factory data reinforced speculation the Federal Reserve will be in no rush to cut interest rates.
Treasuries fell across the curve – with 10-year yields climbing over 10 basis points – as manufacturing unexpectedly expanded for the first time since September 2022 – while input costs climbed. Following the data, the amount of Fed easing priced into swap contracts for this year dropped to around 65 basis points – less than forecast by Fed policymakers. With European markets closed, the lower trading volume helped amplify the moves.
Tesla and Apple led losses in megacaps. The dollar rose against all of its developed-market peers.
