Bonds Are Having the Best Run Since 2020 on Bets Fed Is Done Hiking
- Jobs data, Fed meeting and Treasury refunding drive the rally
- Bond traders see room for Fed to finally end rate-hiking cycle
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A sense of euphoria is catching on in the US Treasury market as investors tally up signs that the Federal Reserve is finally done with its most aggressive monetary policy tightening since the early 1980s.
The yield on 30-year government bonds has plunged by nearly 40 basis points in the days since Jerome Powell and his colleagues reinforced speculation that the central bank is finished hiking interest rates. It’s the biggest three-day drop for the yield — as of noon New York time — since the onset of the coronavirus pandemic in early 2020.