Bond Market Parties On as Jobs Data Revive Fed Rate-Cut Bets
- Traders restore wagers on easing beginning earlier in year
- Gains pared as next week’s Treasury auctions come into view
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The world’s biggest bond market is back in celebration mode after its worst month in more than a year.
Evidence that the US labor market is finally softening in response to the Federal Reserve’s interest-rate increases revived bets that the central bank will begin lowering rates by the end of the year. That enabled the bond market to extend a rally that began Wednesday after supportive comments by Fed boss Jerome Powell.