Corporate Bond Traders Stuck in Rut See Trade Talks as Salvation

There’s one thing that should be able to kick high-grade bonds out of the tight range they’ve been stuck in since a rapid rally in January: a trade truce.

That’s according to investors who said a deal between the U.S. and China is the most likely factor that would push investment-grade bonds in either direction. The Federal Reserve, which also helped fuel last month’s rally, is unlikely to provide much fuel for any swing now that the central bank appears to be on hold for the foreseeable future, they said.