Bond Traders Keep Bets on a Fed Hike This Year After CPI Report

AI Summary

Following a core US inflation report that showed a smaller than expected acceleration in May, bond traders continue to bet that the Federal Reserve will hike interest rates by the end of the year. Treasury yields have strengthened modestly in reaction.

Treasuries strengthened slightly after core US inflation accelerated by less than forecast in May, with bond traders maintaining their bets that the Federal Reserve will raise interest rates by the end of the year.