Updated 1 hour ago
Wall Street Pares Rate Expectations, Bond Yields Fall After Inflation Print
Tuesday’s consumer-price print showed inflation is waning, assuring traders that the Federal Reserve has room to pause its rate-hike campaign at Wednesday’s meeting.
The two-year Treasury yield fell to 4.525% from 4.590% on Monday. The yield on the 10-year note slipped to 3.703% from 3.763%.
Derivatives markets show the fed-funds rate ending the year at 5%, slightly lower than its current level.