The world’s biggest bond market rebounded, with traders gearing up for a record US$42 billion sale of 10-year Treasuries after a solid start to this week’s ramped-up issuance sizes.
Following a selloff that drove two-year yields to their highest since before the Fed’s December “pivot”, bonds climbed. A $54 billion sale of three-year notes drew solid demand, bolstering sentiment and making traders shrug off a slew of cautious remarks from Federal Reserve speakers. The S&P 500 edged up. Megacaps were mixed, with Tesla Inc. up and Nvidia Corp. down. US-listed Chinese stocks rallied on bets the nation will be more forceful to prop up markets. New York Community Bancorp tumbled 22 per cent.
As expected, a drumbeat of central bank officials echoed Jerome Powell’s signals that the central bank will be in no rush to ease policy. Fed Bank of Cleveland President Loretta Mester said policymakers will probably gain confidence…
