Traders trimmed their expectations for the Federal Reserve to aggressively ease monetary policy next year after a report on inflation that was largely in line with forecasts. Swaps traders now see about 108 basis points of Fed rate cuts in 2024, down slightly from before the data was reported, but still expect the first reduction in May. Benchmark two-year yields, which initially fell in the wake of the release, climbed and the yield curve flattened. With the prospect that the Fed will pivot to reducing rates in 2024 left largely intact, investors are now turning their minds toward the next big events for the bond ... (full story)