US Treasuries Gain as Fed’s Williams Fuels Rate-Cut Bets

Treasuries closed higher and bond traders revived bets on a December interest-rate cut after Federal Reserve of New York President John Williams signaled he’s open to lowering borrowing costs further.

Williams said Friday he sees room for another cut “in the near term” as labor conditions show signs of weakening. Market sentiment quickly shifted following the remarks, with investors boosting wagers on a third straight quarter-point cut.