Bond Market Moves Closer to Seeing No Fed Rate Increases in 2016
- Treasuries rally pushed 10-year yield to one-year low
- TIPS outperform after Treasury Department cuts issuance
Goldman, Pimco: Traders Aren't Ready for Fed Hikes
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Bond traders are sending the clearest signal yet that they doubt the Federal Reserve will be able to raise interest rates this year.
The fixed-income market’s balance leaned toward zero rate hikes this year after a report showed U.S. service industries grew in January at the slowest pace since April 2014. Treasuries drew support from the data as well, briefly pushing the benchmark 10-year yield to a one-year low. The bond world’s skepticism about the Fed’s projected pace of four rate increases this year grew in January as sliding energy prices and stocks raised concern about policy makers’ ability to stoke economic growth.