MARKETS PRICE 50% CHANCE OF THIRD FED CUT US Treasuries jumped as core CPI rose 0.3% in January, in line with expectations, easing inflation concerns and boosting bets on further Fed rate cuts. Yields on two-year notes fell to 3.40%, the lowest since October. Traders now see roughly 50% odds of a third 25-basis-point cut by year-end, down slightly from earlier expectations. Economists note the inflation print is encouraging but caution the Fed remains focused on the labor market after strong January jobs data. While a couple more cuts seem reasonable, some warn the market may be overestimating easing this year.(*Walter Bloomberg)