Global Bond Rally Powers on as Rate Cut Bets Appear Everywhere
- Index of sovereign debt excluding US at highest since 2022
- Dovish comments from ECB, Fed officials fuel bond gains
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Bonds around the world are extending gains on expectations that a wave of easier monetary policy will break out next year as inflation fears evaporate.
An index of sovereign debt that excludes Treasuries surged to the highest since April 2022, as rates traders switched to betting the European Central Bank will cut interest rates even before the Federal Reserve does. US government notes are also set for their first annual gain in three years, as bond investors position for an end to the economic resilience that made 2023 so challenging.