Bond traders shift away from Fed rate cut expectations due to persistent inflation.
Bond traders abandon expectations of Fed rate cuts amid persistent inflation and higher-for-longer reality. Treasury yields rise towards yearly highs, and interest-rate swaps predict fewer than three quarter-point cuts this year, contrasting with Fed's median projection in December. Investors no longer anticipate a rate cut in the first half of the year, despite expecting rates to decline eventually.
March 17, 2024
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