CASH FLOW-Yields rise as Fed sees less chance of lowering rates this year

    (Adds data, updates prices)
* Traders cut bets on rate cuts this year
* Worker productivity improved in the first quarter
* The job data for April on Friday in a nutshell

By Karen Brettell
NEW YORK, May 2 (Reuters) - US Treasury yields have soared
Thursday's highs as investors reduced bets
Federal Reserve to lower rates this year after bullish economic policy
comments from Federal Reserve Chairman Jerome Powell on
Wednesday.
Powell said that the drop in inflation this year could be due to
transient factors and that economic growth and employment has been
stronger than expected by the committee.
His comments came after the declaration of the Fed meeting ended
your most cautious on controlled inflation.
"We are always trying to find out where the new range is
after the Fed, "said Tom Simons, an economist specializing in money market
Jefferies in New York.
Interest rate futures operators see a reduced rate opportunity
cut this year after Powell's comments. They are now evaluating in a
50% chance of a rate cut in December, compared to 64 before
percent before the Fed's meeting statement, according to the WEC
The FedWatch tool of the group.
In view of inflation, the next major catalyst
will give clues about the Fed's policy will be consumer price inflation
data on May 10.
"We will either confirm that we should take
these rate cuts bet on the table, or if it comes
disappointing, so maybe these come back, "said Simons.
Bonds have changed little on Thursday's data showing that
The productivity of American workers has increased at its fastest pace and more
less than four years in the first quarter, reducing labor costs and
suggesting that inflation could remain benign for a moment.
Other data shows that new orders for products manufactured in the United States have increased
March, while the demand for
transportation equipment, but rising inventories and marginal margin
rebound of unfilled orders indicated slower manufacturing
activity.
Job numbers for April, expected Friday, will be closely monitored
for more information on wage pressures and the strength of
the work market.
US private employers created 275,000 jobs in April, although
above the expectations of economists and the highest since last July, the
The national ADP report on employment was released on Wednesday.



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