Bond traders ramped up their bets on an abrupt end to the Federal Reserve’s tightening cycle, pricing in the first interest-rate cut by May as a so-called “melt up” in bond prices continues. Yields on two-year Treasuries fell as much as 10 basis points on the day. Swap contracts referencing Fed meeting dates repriced to levels consistent with the policy rate declining by a quarter percentage point from its current range of 5.25%-5.5%; a reduction was previously seen happening a month later in June. A further ginning up of hopes for a swift Fed pivot bolstered US Treasuries, adding to a winning month for holders of US ... (full story)