Treasury Yields Plunge as Inflation Slows, Signaling Possible Fed Pivot
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Treasury yields plunged on Tuesday as slower-than-expected inflation bolstered views that the Fed's rate hikes are nearing an end.
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The 10-year yield fell as much as 21 basis points to 4.43%, the lowest since September 22.
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Swap contracts indicate traders now see rates falling by mid-2023, with a quarter-point cut possible by July.
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Falling yields suggest the peak in inflation has passed and the high point for yields occurred unless oil surges over $100 again.
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Some strategists still believe inflation will take time to decline, keeping the Fed from cutting rates too quickly next year.