Bond Traders See Little on Radar to Derail Fed Rate-Cut Bets
- Treasury 10-year yield dips to lowest since 2017 on jobs data
- Futures traders now see July easing as a near-certainty
Runners pass the Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
There’s little ahead to quash the bond market’s confidence that the Federal Reserve will cut rates as soon as July, as the backdrop of weakening growth and tepid inflation may outweigh any potential easing of trade tensions in the coming days.
The focus now for traders -- who see a quarter-point rate cut by the end of July as a lock -- comes Monday or even earlier, ahead of a U.S. deadline for tariffs on Mexican goods. U.S. President Donald Trump said Friday there’s “a good chance” of a deal with Mexico, but improvement on that front may not move the needle much as negotiations with China are still looming.