Bond Traders Signal the Path to Reopening Will Be Long and Bumpy
- For 10-year Treasuries, April has turned into a range-trade
- Hopeful signs are offset by grim reality of economic collapse
A person rides a bicycle along a nearly empty West Broadway in the SoHo neighborhood of New York, U.S.
Photographer: George Etheredge/BloombergThis article is for subscribers only.
After the mayhem of March, Treasuries have entered a period of fragile calm as traders balance hopes that U.S. businesses will start to reopen against the devastatingly weak economic backdrop that’s likely to prevail for months.
The big question for investors now is which force takes precedence. President Donald Trump’s guidelines for states to relax social-distancing measures amid the pandemic, along with hints of progress on a medical treatment, helped buttress risky assets last week.