Bonds
Treasuries Set for Longest Run of Gains Since 2021 as PCE Awaits
- US government bonds poised to complete fourth monthly gain
- Inflation and labor market data are key to the winning streak
Yields on 10-year Treasuries touched a 14-month low of 3.67% in early August.
Photographer: Nathan Howard/BloombergThis article is for subscribers only.
Treasuries are poised for their longest monthly winning streak in three years as traders look past US data on personal income and expenditure due Friday and prepare for the Federal Reserve to start cutting interest rates.
US government bonds returned 1.5% in August through Thursday, set for a fourth month of gains that would be the longest run since July 2021, according to the Bloomberg US Treasury Total Return Index. The gauge has been rallying since the end of April, extending this year’s gain to almost 3%, as investors have grown more confident in the case for lower US borrowing costs.