A rethink on when the Federal Reserve will cut interest rates is reverberating through the fixed income market, heightening risk for those betting the explosive rally that took bonds higher at the end of 2023 will continue this year. Investors piled into Treasuries late last year on expectations that the Fed will cut rates as soon as the first quarter of this year, sending government bond prices roaring back from 16-year lows. Many are now recalibrating those bets following a blowout U.S. jobs number and a cautious message from the Fed, which last week said the strong economy could spur an inflationary rebound if rates are cut too soon.
A rethink on when the
Federal Reserve will cut interest rates is reverberating through
the fixed income market, heightening risk for those betting the
explosive rally that took bonds higher at the end.
NEW YORK, Dec 29 - A gauge measuring the borrowing costs on loans between banks
and other participants in the U.S. repurchase agreement
market hit its. -December 29, 2023 at 01:35 pm EST
- MarketScreener
By Davide Barbuscia NEW YORK (Reuters) - A gauge measuring the borrowing costs on loans between banks and other participants in the U.S. repurchase ag.