The world’s biggest bond market extended losses after solid US factory data reinforced speculation the Federal Reserve will be in no rush to cut interest rates.
Treasuries fell across the US curve — with 10-year yields climbing over 10 basis points — after data showed manufacturing unexpectedly expanded for the first time since September 2022 — while input costs climbed. Equities edged lower after the S&P 500 notched its fifth-straight month of gains — spurring speculation of a consolidation or pullback.
“Overall, it was a strong showing from the manufacturing sector that has contributed to the weak start to the week for the Treasury market,” said Ian Lyngen at BMO Capital Markets. “Yields were already higher on the day ahead of the ISM release in a move that suggests a flow specific or deal-related move as opposed to simply reflecting the data.”
Later this week, a report is expected to show employment…
