US Treasury Rally Supports Investor Demand for 20-Year Bonds
- Traders price in higher odds of two Fed rate cuts this year
- Market extends rally after a very solid 20-year bond sale
This article is for subscribers only.
US Treasuries rallied, pushing yields to fresh session lows, as investors embraced a sale of 20-year bonds and built up expectations for Federal Reserve interest-rate cuts this year.
Yields declined across the maturity spectrum on Tuesday, with the market extending a rally sparked by weak US retail sales data earlier in the session. The move was led by the two-year yield, which at one point fell nearly 8 basis points below 4.69% — short of last week’s low 4.65%.