(Bloomberg) — Bond investors are starting to believe that the worst-ever rout in US Treasuries may soon come to an end.
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US 10-year yields experienced the largest decline since March following dovish comments from Federal Reserve officials, which led to speculation that interest-rate hikes are nearing their end. Additionally, concerns over the Israel-Hamas war increased demand for safe-haven assets. The magnitude of the move was amplified due to the closure of cash Treasuries trading worldwide on Monday for a US holiday.
Two Fed officials who spoke on Monday suggested that the recent surge in US yields may have already tightened financial conditions to some extent.
The Fed speakers “seemed very much on the same page in acknowledging that higher bond yields and tighter financial conditions will influence their decision on the Fed funds rate,” said Andrew Ticehurst, a rates strategist at Nomura Holdings Inc. in Sydney. “Market pricing indicates that the Fed is unlikely to raise rates this year,” he added, while noting that there may still be a risk of a final…
2023-10-10 00:07:33
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