Bonds
Bond Traders Built Bets on a Treasury Rally Each Day in July
- Build up in open interest signals traders added new long bets
- JPMorgan survey shows bullish bets rising to most in two weeks
Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, DC, on July 9.
Photographer: Tierney L. Cross/BloombergThis article is for subscribers only.
Traders are betting on a rally in the $27 trillion Treasury market as Federal Reserve Chair Jerome Powell casts a spotlight on the importance of US inflation data.
Every day since July 1, traders have built bullish bond wagers in anticipation of the Fed chair’s testimony to Congress and a reading of the consumer price index this week, positioning data show. Those bets stand to benefit if Powell’s remarks or the inflation data on Thursday bolster expectations for interest-rate cuts this year.