Yields on U.S. Treasuries rose on Friday, with two-year bonds hitting their highest level in 3.5 months, after data showed consumer spending rebounded strongly in January in a context of strong growth. income, while inflation accelerated.
* Consumer spending, which accounts for more than two-thirds of US economic activity, rose 1.8% last month. Economists polled by Reuters had expected a rebound of 1.3%.
* The personal consumption expenditure (PCE) price index also climbed 0.6% last month, after rising 0.2% in December.
* “This increases the pressure on the Federal Reserve to keep moving forward. It is clear that it has work to do to slow the economy and bring inflation down to 2%,” said said Priya Misra, head of global interest rate strategy. York.
* Two-year yields, very sensitive to the Federal Reserve’s monetary policy, rose to 4.772%, the highest since November 4.
* Benchmark 10-year rates rose to 3.932%, just down from Thursday’s 3.978%, which was the highest since November 10.
* Fed funds futures traders expect the Fed’s benchmark rate to peak at 5.38% in July, from 4.58% today. (Additional reporting by Herb Lash in New York Editing in Spanish by Javier López de Lérida)