Volatile Bond Market Puts Traders on Defense Amid Fed-Cut Doubts
- Move Index rises toward 2024 high as key yields exceed 4%
- Big asset managers favor the sweet spot of five-year debt
The combination of sticky inflation and weak labor-market figures last week led traders to trim bets on the degree of the Federal Reserve’s easing left in 2024.
Photographer: Ting Shen/BloombergThis article is for subscribers only.
Bond investors are going on defense as the outlook for the Federal Reserve’s interest-rate cutting path turns more uncertain.
The combination of sticky inflation and weak labor-market figures last week led traders to trim bets on the degree of Fed easing left in 2024, while also driving yields to the highest since July. Meanwhile, a closely watched measure of expected volatility in Treasuries rose to the highest since January.