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Sit Out the Treasury Rally at Your Own Risk

  • Fed’s openness to easing sent 10-year Treasury yields below 2%
  • Group-of-20 outcome unlikely to slow sliding yields: NatWest
Views Of Manhattan As U.S. Stocks Advance
Photographer: Michael Nagle/Bloomberg

The longest weekly rally in Treasuries since 2012 may find another gear as bond traders turn their focus to Osaka, where world leaders descend next week for a pivotal Group-of-20 meeting.

Yields on 10-year Treasuries broke below 2% for the first time since 2016 this week after the Federal Reserve signaled it’s ready to lower borrowing costs, prompting a flurry of bets that a rate cut will happen in July. Ahead of the G-20 meeting, strategists at NatWest Markets, Bank of America Corp. and elsewhere see little standing in the way of even lower yields.