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Treasuries Rally on Fed Cut Hopes
18 Nov
Summary
- Treasury yields are falling, signaling increased trader confidence in Fed rate cuts.
- The US 10-year Treasury yield dropped to 4.11%, three basis points lower.
- The two-year Treasury yield saw its biggest drop in nearly two weeks, falling four basis points.
US Treasury yields are experiencing gains, marking their first back-to-back advance of the month. This trend is fueled by traders escalating their bets on future Federal Reserve interest-rate reductions. Anticipation of key employment figures, particularly from ADP Research on Tuesday, is driving market sentiment.
The yield on the benchmark US 10-year Treasury note decreased by three basis points, settling at 4.11%. Concurrently, the two-year Treasury yield, a bellwether for monetary policy expectations, saw a four-basis-point decline. This marks the most significant drop for the two-year yield in nearly two weeks.
These movements reflect a market increasingly pricing in a more accommodative stance from the Federal Reserve. Investors are keenly awaiting the upcoming jobs report, which is expected to provide further clarity on the economic conditions influencing the Fed's decision-making regarding interest rates.
