US Bond Selloff Deepens as Wagers on Half-Point Rate Cut Crumble
- Declines push key US Treasury yields above the 4% mark
- Markets price in less than 50 basis points of cuts by year end
This article is for subscribers only.
US bonds tumbled on Monday, deepening a rout triggered by strong labor-market data that caused traders to sharply ratchet back bets on aggressive Federal Reserve interest-rate cuts.
The declines pushed key yields above 4%, levels last seen in August, as investors abandoned their bullish bets on Treasuries. For the first time since Aug. 1, money markets imply fewer than 50 basis points of rate reductions through the end of the year. Traders now see just an 80% chance the Fed cut rates by even 25 basis points in November.