US Bonds Surge as Weak Retail Sales Boost Fed Rate-Cut Bets
US retail sales are forecast to have slowed to 0.4% in December from 0.6% previously.
Photographer: David Paul Morris/BloombergTreasuries surged in the day leading up to the US government’s belated reading of labor-market data, with investors pricing in a greater chance that the Federal Reserve lowers interest rates multiple times this year.
The moves on Tuesday sent some yields to their lowest levels of the past month after data showed a loss of consumer spending momentum at the end of the holiday-shopping season, reflecting anxiety about the cost of living and slowing job growth. That sets the scene for a delayed January employment report on Wednesday that’s been highly anticipated by market participants.