Bond Yields Fall on Signs Fed Is in ‘Sweet Spot’: Markets Wrap
- US third-quarter GDP grew at fastest pace in about two years
- Meantime, Fed’s preferred inflation metric was revised lower
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The rally that’s driving global bonds to their best month since 2008 gained further traction, with Treasuries climbing on bets the Federal Reserve will start cutting interest rates in the first half of 2024.
Hopes for a Fed pivot intensified after economic data emboldened the so-called Goldilocks scenario. Two-year yields dropped 10 basis points to 4.64%. Fed swaps priced in a quarter-point rate cut by May. The S&P 500 wavered near “overbought” levels. Nvidia Corp. joined gains in chipmakers, Tesla Inc. whipsawed in the run-up to its Cybertruck event and Microsoft Corp. fell. Oil climbed ahead of a high-stakes OPEC+ meeting.