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Volatile Bond Market Puts Traders on Defense Amid Fed-Cut Doubts
Bond investors are going on defense as the outlook for the Federal Reserve’s interest-rate cutting path turns more uncertain. The combination of sticky inflation and weak labor-market figures last week led traders to trim bets on the degree of Fed easing left in 2024, while also driving yields to the highest since July. Meanwhile, a closely watched measure of expected volatility in Treasuries rose to the highest since January. It’s a backdrop that’s making it hard to decide where to deploy cash in the world’s biggest bond market. To lessen the vulnerability to a resilient economy, potential fiscal shocks or ... (full story)