“Treasurys prices slid early Friday on yet another painfully high inflation reading, which further diminishes the prospects of another cut in interest rates any time soon.”

Facing revived inflation pressures, fed funds futures drop,
reducing rate expectations. February, settling down 5 BP at 95.95, priced in about an 80% chance for the FOMC to reduce the funds rate to 4%, from 4.25%, at the Jan. 29-30 meeting. That’s down from about a 100% chance as priced in
at Thursday’s settlement. April fully priced for 4% at the March 18 FOMC meeting, with only about a 28% chance for 3.75%. A day earlier, April priced in about a 46% chance for 3.75%. Settles down 4.5 BP at 96.07.
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