Bonds
Fed-Fueled Bonds on Track for Longest Run of Gains Since 2010
- Market prices in about 75 basis points of easing left in 2024
- Traders are split on size of Fed’s November rate reduction
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Treasuries are poised for their longest monthly winning streak in 14 years as traders bet on more half-point reductions in interest rates as the Federal Reserve aims for a rare soft landing.
US government bonds have so far handed investors returns of 1.2% in September, set for a fifth month of gains that would be the longest run since 2010, 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 3.8% — and its advance over the past 12 months to nearly 10%.