Traders Are Ratcheting Back Rate-Cut Bets in US and Europe

Traders on both sides of the Atlantic are retreating from bets on interest-rate cuts from the Federal Reserve and European Central Bank in upcoming meetings.

Fading hopes for rate reductions are pushing yields on short-dated bonds higher and longer-dated rates lower this week for both US Treasuries and European government bonds, reflecting an expectation that the central banks will hold rates steady.