Treasuries Lead Global Bond Rally as Interest-Rate Bets Falter
- U.S. 10-year yield falls below 3%, first time since September
- Markets scale back 2019 Fed rate pricing to just one increase
Photographer: Mandel Ngan/AFP via Getty Images
This article is for subscribers only.
Treasuries rallied, pushing 10-year yields below 3 percent for the first time since September, on speculation prospects are diminishing for global interest-rate increases next year. European bonds also gained.
U.S. money-market pricing showed traders had scaled back expectations for Federal Reserve hikes to just one in 2019, from as many as two estimated earlier this month, after Chairman Jerome Powell said borrowing costs are “just below” a range of estimates of the so-called neutral level.