Treasuries rally as data points to a September rate cut
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Treasuries are rising as data suggests a September rate cut; Two- and 10-year yields down by about five basis points (bps) to 4.38% and 4.2%, respectively; US government debt on pace for a third-straight month of gains; Traders expect at least two quarter-point rate reductions this year; Lindsay Rosner of Goldman Sachs Asset Management believes a rate cut in September is likely; US inflation rose at a tame pace in June; US consumer sentiment eased in July to an eight-month low; Former New York Fed president William Dudley and Mohamed El-Erian have expressed opinions on rate cuts; Shorter-term Treasuries have led the rally, pushing the yield curve steeper; The yield curve is becoming less inverted; The steepener trade has gained momentum; Interest-rate swaps have priced in five quarter-point cuts in the next six policy meetings; Some investors are cautious about the bond rally and rate pricing;
#Treasuries #InterestRates #Inflation #FederalReserve #RateCut
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