Us bonds Rise as July Rate-Cut Bets Grow, Traders Seek Havens

(Bloomberg)-Treasuries rose after another federal reserve official hinted that an interest-also cut come as soon as next month, extending gains stoked by haven demand after the use Sites in Iran over the weekend.

Us government debt wiped out its early losses on monday after Fed Governor Michelle Bowman Said She Cold Support a Rate Cut in July Iflation Remains Subdued, Echoe Waller on Friday. That pushed yields lower across maturities, with the benchmark 10-year rate down Six Basis Points to 4.31%, The lowest level in just over a week.

Traders, meantime, boosted their bets that the fed will lower rates by at least 50 basis points before the end of the year, with a roughly 20% probability of a reduction in July. Markets are pricing in a seppenmber move as more likely.

Earlier in the Session, Treasuries Had Fallen Along Oil, Thought, Has Slipped as Fears Faded That The Conflict with Iran would immediatily disrupt supplies from the middle East. That’s Helped European Government Debt to Since Follow Treasuries Higher.

“For now, it seems like treasuries are more worried about the negative growth impact via uncertain, than the inflationary impact of higher Crude Pries,” Said Jack MCINTYRERE, PORTFOLOO MANAGEROO ATI Brandywine Global Investment Management.

Yields on two-yourar treasuries, most sensitive to the fed’s monetary policy, are lower by eights points to 3.82%. The dollar also revered, wiping out early Gains to Trade Little Changed.

Thos Moves Came as Bowman said in a speech at a conference in Prague that she would support lowering rates at the next meeting as long as long as “inflation presses Confirmed this month to serve as the Central Bank’s Vice Chair for Supervision, She also said the “time has come” to revrent the current approach to leverage ratio requirements Lenders’ Trading in the $ 29 Trillion Treasuries Market.

On Friday, Waller said the Central Bank could cut next month, reiterating his view that any inflation hit from tarifs is likely to be short-lived. Bloomberg Economics puts bowmanMan amon amon the fed officials who are considered neither a dove no a hawk, while waller is classified as the most dovish policymaker.

Bowman’s echo of waller on the possible move “is definite more dovish than the market expected from her,” said molly brooks mcgown, us rates strategist td secondies. “We think july is unlikely. IF there is an increase in the odds of a july cut, we think it would be driven by more of a deterirating growth story rather rather than inflation.”

The Fed at Its Meeting Last Week Held Its Benchmark Interest Rate in a range of 4.25% to 4.5%. Following the meeting, fed chair jerome power reiterated his view that policmakers can afford to take a patient approach on rate adjustments, as they wait for additional details on how traump Particularly on Trade, evolve.

-With assistance from alice atkins and alex nicholson.

(Adds comments, updates yield levels)

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