Bonds Have Banner Day as Inflation Report Revives Fed-Cut Bets
- Five- to 10-year yields decline at least 15 basis points
- Traders resume fully pricing in another rate cut by July
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US government bonds had their best day in months after benign inflation data revived the case for additional Federal Reserve interest-rate cuts.
The rally slashed Treasury yields across maturities by at least 10 basis points at one stage, with five- and 10-year yields falling as much as 16 basis points. The 10-year benchmark closed 14 basis points lower at 4.65%, its biggest daily decline since August.