US Bonds Slip as Data Reinforces Trader Bets on a Fed Pause

Traders’ expectations that the Federal Reserve will delay interest-rate cuts until later in 2026 were reinforced by US economic data showing resilience in the job market and consumer spending.

Short-maturity Treasury yields, which are most sensitive to expectations for Fed rate changes, rose, with the two-year note’s climbing as much as 4 basis points to 3.62%, the highest since Dec. 10. Thirty-year yields, however, were down slightly on the day and near where they started the year.