Markets today: Treasury yields rise, stock futures fall after U.S. PPI

Bond yields rose and stock futures fell after hotter-than-estimated inflation data spurred bets the U.S. Federal Reserve will be in no rush to cut interest rates.

Bond yields rose and stock futures fell after hotter-than-estimated inflation data spurred bets the U.S. Federal Reserve will be in no rush to cut interest rates.

Treasury two-year yields, which are more sensitive to imminent Fed moves, rose 10 basis points to 4.68 per cent. S&P 500 contracts signaled the U.S. benchmark gauge will trim its February gains. The U.S. dollar fluctuated.

Swaps are currently pricing 90 basis points of Fed policy easing this year. Just two weeks ago, bets were on around 150 basis points of cuts.