Bonds
Bets on Big Treasuries Rally Are Booming Before Fed Decision
- Open interest continues to climb in US 10-year note futures
- JPMorgan survey shows clients net longs biggest in 15 years
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US Treasuries held onto recent gains ahead of the Federal Reserve’s interest-rate decision as traders ratcheted up bullish bets in hope that Chair Jerome Powell will signal a cut in March is firmly on the table.
Yields were little changed across the curve on Wednesday, with two-year rates hovering around the lowest level in more than a month, as the market awaited Powell’s afternoon press conference for clues on the outlook for policy. The US central bank is overwhelmingly expected to keep rates steady this week, though swaps are pricing in a roughly 30% chance of a cut in March.