Bond Traders Pile Into Fresh Bets on Faster Pace of Fed Cuts
- Dovish options targeted while short covering seen in futures
- Fed swaps shift full rate cut to November from December
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Bond traders are tilting dovish again, piling into wagers that would benefit from a faster pace of Federal Reserve interest-rate cuts as Treasuries rally.
While US yields inched higher on Wednesday, 10-year rates have declined by more than a quarter point in recent trading sessions, tumbling after the Fed’s preferred inflation gauge held steady and measures of manufacturing and spending came in softer than expected. Further reports on private jobs growth and economic activity are due Wednesday.