• Treasury yields rose to 2024 highs as evidence of sticky US price pressures casts doubt on the Federal Reserve’s ability to start lowering interest rates later this year.
  • Another key inflation report lies ahead on Friday, with the potential to further erode expectations for even a single rate cut this year. Even so, demand was fair-to-strong for this week’s more-than-$180 billion worth of Treasury auctions, a sign that investors remain inclined to treat yield surges as buying opportunities.
  • Economic data earlier on Thursday was the latest to force Wall Street to temper its expectations for lower borrowing costs in the world’s top economy. Gross domestic product increased at a 1.6% annualized rate last quarter, while a closely watched measure of underlying inflation advanced at a greater-than-expected 3.7% clip.