Treasuries Post First Gain Since 2020 as Fed Pivot Gets Traction
- Yields retreat from multiyear highs reached in October
- Debt supply concerns ease as auction-size growth is pared
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The US Treasury market posted its first annual gain since 2020 as slowing growth and inflation bolstered views that the Federal Reserve’s campaign of interest-rate increases is likely over.
The result stands in sharp contrast to the market’s performance for most of 2023. Benchmark yields were propelled to multiyear highs in October by the prospect that monetary policy would remain tight indefinitely. Growth in the supply of Treasury debt also spurred investors to demand higher rates of return. At its worst point on Oct. 19, year-to-date losses reached 3.3%.