Bonds
Treasuries Surge as Weak Data Prompts Paring of Rate-Hike Wagers
- Two-year yield falls sharply, market trims November hike call
- Traders focus on August jobs data to affirm softening trend
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Treasury yields slumped to the lowest levels in more than a week after bigger-than-expected declines in gauges of job creation and consumer confidence prompted bond traders to assign lower odds to another Federal Reserve interest-rate hike this year.
Short-maturity yields, more sensitive to changes in the Fed’s rate, led the move, with the two-year rate sliding as much as 13 basis points below 4.87%, the lowest for a security of that tenor since Aug. 11. The two-year note was sold via an auction on Monday that drew 5.024% and the rally in the sector was powered in part by a large block futures buyer in the aftermath of the data.