US Bonds Climb as Traders Look to Jobs Data to Back Big Fed Cuts
- Traders see one-in-three odds of a half-point September cut
- US Treasury index has gained for four straight months
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Treasuries rose ahead of a closely watched US jobs report, with speculation mounting that the Federal Reserve will opt for a half-point interest-rate cut this month if the data shows the economy is weakening.
Short-maturity notes led the advance, driving the two-year yield to within striking distance of the 10-year equivalent. This portion of the yield curve is watched as a recession indicator, and briefly ended an inversion this week. The yield on 30-year securities slipped just below 4%, the lowest level this year.