Traders Slash Fed Bets After Data; Key Yield Inversion Deepens

From bnnbloomberg.ca

US short-term yields slumped Friday as slower-than-anticipated wage growth and an unexpectedly weak services-sector indicator prompted traders to trim expectations for just how high the Federal Reserve might push its overnight benchmark. The moves reversed the previous day’s bond-market selloff and came even as job growth and the unemployment rate for December were better than expected. Most segments of the Treasury yield curve steepened as two- and three-year yields each plummeted more than 20 basis points. Still, three-month bill yields exceeded the 10-year by a full percentage point for the first time in decades ... (full story)