US Bonds Rose as Recession Angst Fuels Haven Demand
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US Treasuries surged and investors boosted their bets on Federal Reserve interest-rate cuts Monday as fear of a economic slowdown took hold across US markets.
The bond rally on Monday sent yields on the benchmark 10-year notes down as much as 10 basis points to 4.2% as US stocks posted their worst day of the year. The flight to safety came as traders also ramped up their expectations for Fed rate reductions this year, pricing in nearly 79 basis points of easing and a greater chance the next move comes in May.