Bond Bulls in Retreat as Powell Shows No Urgency, Stocks Climb
- Monday’s rally left Treasuries ‘overbought’: SocGen’s Rajappa
- Traders trim bets on 2019 rate cuts slightly after remarks
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Treasury yields have rebounded from multiyear lows after Federal Reserve Chairman Jerome Powell opened the door to possible interest-rate cuts while stopping short of signaling any kind of imminent move.
Powell signaled a willingness to lower borrowing costs if necessary amid trade friction, and stocks surged based on that as risk appetite recovered. As the dust settled, traders had modestly trimmed bets on policy easing over the next year. That shift started earlier Tuesday after Chicago Fed President Charles Evans stopped short of endorsing the idea that the central bank should cut rates.