Treasuries Soar Most Since 2023 as Traders Boost Rate-Cut Bets

Treasuries rallied, with short-term yields posting their biggest drop since late 2023, after softer US jobs data prompted traders to boost bets that the Federal Reserve will lower interest rates as soon as next month.

Yields tumbled across maturities with the two-year notes’ declining as much as 29 basis points. The rally accelerated late Friday afternoon in New York after Fed Governor Adriana Kugler said she would step down from her position this month.