US Bonds Rally as Fed’s Hammack Revives Odds of a June Rate Cut
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Treasuries jumped after comments by a Federal Reserve official bolstered odds that the central bank will cut interest rates as early as June.
The rally on Thursday was led by short to intermediate-maturity tenors, which are more sensitive than longer-maturity yields to Fed interest-rate changes. Yields on two-year notes declined as much as 8 basis points to just below 3.79%, remaining inside Wednesday’s range. The five-year yield declined nearly 10 basis points below 3.93%.