Treasuries Rally Before Record 10-Year Bond Sale: Markets Wrap
- Mester says Fed should gain confidence to cut later this year
- Minneapolis chief Kashkari says more inflation progress needed
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The world’s biggest bond market rebounded, with traders gearing up for a record $42 billion sale of 10-year Treasuries after a solid start to this week’s ramped-up issuance sizes.
Following a selloff that drove two-year yields to their highest since before the Fed’s December “pivot”, bonds climbed. A $54 billion sale of three-year notes drew solid demand, bolstering sentiment and making traders shrug off a slew of cautious remarks from Federal Reserve speakers. The S&P 500 saw a small gain. Megacaps were mixed, with Tesla Inc. up and Nvidia Corp. down. US-listed Chinese stocks rallied on bets the nation will be more forceful to prop up markets. New York Community Bancorp sank 22%.