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US: Bonds Rally as New Inflation Data Repair Damage Inflicted by CPI
Treasuries rallied as a report on producer prices suggested that Wednesday’s selloff sparked by hot consumer inflation data was overblown. The advance trimmed some yields by nearly 10 basis points, erasing most of the previous day’s surge. Even before the January producer price index was released, interest-rate strategists at JPMorgan Chase & Co. said investors should buy two-year Treasury notes after Wednesday’s selloff pushed yields toward the high end of the recent range. “It’s a relief rally,” said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management. ... (full story)