Bond traders are bracing for wilder market swings in the US than in Europe, as signs the world’s largest economy is faltering fuel bets on a jumbo interest-rate cut from the Federal Reserve.
Just as bond traders grow more assured that inflation is finally under control, a camp of investors is quietly building up protection against the risk of a future spike in prices.
Global bonds rallied as traders bet the Federal Reserve and fellow central banks will turn more aggressive in cutting interest rates amid mounting concern that economic growth is faltering at a faster pace than expected just weeks ago.
US bonds rallied sharply as signs of a slowing economy and a recent stock-market rout fueled calls for quicker interest-rate cuts from the Federal Reserve, further juicing bets on a steeper yield curve.
Bonds surged after business activity across Europe encountered an unexpected setback, prompting traders to amp up wagers on monetary easing.
A global bond rally continued, sparked by signs the world’s biggest economy is cooling, ahead of the crucial next read on the state of the US labor market.
Global bond investors are coming to terms with the likelihood that interest rates are going to stay high for the foreseeable future.
A global bond rally ignited by signs that inflation in the world’s largest economy is finally slowing once again faces a reality check this week.
JPMorgan Chase & Co.’s asset management arm has created a new European money market fund focused on public debt, a kind of investment that largely disappeared when interest rates were negative.
The global bond rally ignited by hopes of lower interest rates in the US will face its first big test on Tuesday, when the Treasury kicks off $125 billion of sales this week.
Treasury yields rose further — with some reaching year-to-date highs — ahead of inflation data comprising the market’s next test after a string of Treasury auctions went off without a hitch.
As global financial markets reel under the possibility of 5% benchmark Treasury yields, the question on investors’ minds: how much worse could it get?
It was the week that bond markets finally seemed to grasp what central bankers have been warning all year: higher interest rates are here to stay.
Global bonds and stocks are rallying on hopes that the latest signs of weakness in the US economy will push the Federal Reserve to rethink the aggressive monetary policy tightening that some fear will trigger a recession.
The hottest US inflation in four decades will push the Federal Reserve to raise interest rates more aggressively this year, and a recession may not be far behind.
Treasuries gained for a second day as investors sought out the safest debt, driving the 10-year yield down 11 basis points to 2.77%, it’s lowest level since late April. Weaker than forecast US jobless claims and a sharp decline in a regional Philadelphia Fed survey spurred a burst of buying in Treasuries, with equities futures indicating that stock prices will open lower.
U.S. Treasuries tumbled Monday, driving the yield on five-year notes to the highest level since September 2008 amid speculation persistent inflation will prompt the Federal Reserve to tighten policy more aggressively.
