Bonds Rally as Traders Reload Fed Bets After Data: Markets Wrap
- US job openings fall to lowest since 2021 in broad cooldown
- Fed swaps price in a first interest-rate cut in November
This article is for subscribers only.
The bond market climbed as signs of labor-market cooling reinforced speculation the Federal Reserve will be able to cut rates this year.
Just a week away from the Fed meeting, the so-called JOLTS report showed US job openings hit the lowest since 2021. The figures lifted Treasuries, with 10-year yields extending a four-day plunge to almost 30 basis points. Fed swaps are now pricing in a first cut in November — and higher odds of a September reduction. Despite the dovish bets, stocks struggled to gain much traction as the bad-news-is-good-news narrative failed to entice many traders.