(Bloomberg) — The world’s biggest bond market got hit as a solid retail sales report had traders trimming their bets on Federal Reserve rate cuts this year.
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Treasury yields climbed as the economic figures fanned doubts over how quickly the central bank will ease policy. Swap contracts priced in a total of 42 basis points of rate reductions over the November and December meetings. An advance in equities fizzled out after the S&P 500 hit fresh all-time highs. In late trading, Netflix Inc. rallied as subscriber additions beat estimates.
US retail sales strengthened in September by more than forecast in a broad advance, illustrating resilient consumer spending that continues to power the economy. The data followed a blowout jobs report and a hotter-than-estimated consumer inflation print released earlier this month that only reinforced the view the economy is nowhere near a recession.
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