Embattled Treasury Bulls Look to Fed to Spur Long-Sought Rally
- Treasury bulls face frustrating wait for a weaker jobs market
- Data dependent Fed leaves traders at risk of more yield swings
The Marriner S. Eccles Federal Reserve building in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
A bond market that wants to rally is anxiously waiting in the wings for the Federal Reserve to give it the green light next week as a robust economy keeps upending bullish positions.
Treasuries have surged in recent weeks, sending yields on policy-sensitive two-year notes down nearly 30 basis points from this year’s peak of 5.12% reached on July 6, as signs of slowing inflation boost bets policymakers are nearing the end of their most aggressive hiking cycle in decades.