Major bond-market gauge cements worst 2-day rout since October as market rethinks path of Fed rate cuts
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A roughly $100 billion bond exchange-traded fund that tracks the Bloomberg U.S. Aggregate index experienced its worst two-day drop since October. U.S. bonds extended a rout sparked by strong economic data and pushback from the Federal Reserve on the potential timing and magnitude of interest-rate cuts this year. The benchmark 10-year Treasury yield rose to 4.163% on Monday, a roughly 30 basis-point jump from the start of February. Fed Chairman Jerome Powell reiterated a need for the central bank to be careful about rate cuts in a “60 Minutes” interview. The iShares Core U.S. Aggregate Bond ETF fell 0.8% on Monday, marking its worst two-day drop since Oct. 3, 2023. The Dow Jones Industrial Average closed 0.7% lower and the S&P 500 index ended down 0.3% on Monday. The ICE BofA Move Index, a “fear” gauge of bond-market volatility, was last pegged at about 113 on Monday. There are concerns that higher interest rates for longer could hurt underwater commercial-real estate assets held by banks.

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https://www.marketwatch.com/story/major-bond-market-gauge-cements-worst-2-day-rout-since-october-as-market-rethinks-path-of-fed-rate-cuts-3a3daa9a