Treasuries Rally as Cool Inflation Boosts Bets on Three Fed Cuts
- JPMorgan looks for earlier start to Fed easing, in September
- Most Treasury yields fall to lowest levels since March
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Treasury yields tumbled after benign inflation data renewed confidence that the Federal Reserve will cut interest rates at least twice this year.
Most rates slid to their lowest since March, with those on two-year debt — more sensitive than longer maturities to changes in the Fed’s policy outlook — sinking as much as 13 basis points to 4.486%. Economists at JPMorgan Chase & Co. responded by pulling forward their forecast for the start of Fed easing to September from November, and traders fully priced in a September cut for the first time in months.