Bond market has fully priced in a quarter-point Fed cut next week

The Treasury market ended lower after a choppy session that started with a sell-off in the wake of inflation data. — Reuters

NEW YORK: The bond market has ended its long flirtation with the US Federal Reserve (Fed) cutting interest rates by half a point this month as resilient inflation and labour market data reinforce a measured course of action.

Swap traders have fully priced in a quarter-point reduction at the Fed’s policy announcement next week.