US Bonds Rise as a Cloudy Economic Path Backs Bets on Fed Cuts
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US Treasuries consolidated gains in a choppy trading session with markets remaining confident that policymakers at the Federal Reserve are still on a path toward lower interest rates.
The advance on Thursday briefly pushed yields on five-year notes below 4% for the first time since mid-March, with action in the options market indicating traders see a further drop in the next month. The two-year rate, most sensitive to changes in monetary policy, slid to 3.96% after falling as much as seven basis points on Wednesday. Treasuries trimmed the bulk of their early gains during the New York afternoon as oil prices rose to their session peaks and a rally in UK gilts faded.