(Bloomberg) — Treasuries rose, taking benchmark yields to the lowest levels in more than a week, after US manufacturing data reinforced bets the Federal Reserve will cut interest rates at least once this year.
Most Read from Bloomberg
Longer-dated bonds led the market higher after the Institute for Supply Management’s manufacturing survey showed factory activity contracting and output weakening in the world’s largest economy last month. Yields on 30-year bonds dropped as much as 10 basis points to 4.546%, the lowest since May 23.
The bond market is “desperate for good news,” said Michael Kushma, Morgan Stanley Investment Management’s chief investment officer of global fixed income, on Bloomberg Television. “It wants a reason to rally, it seems.”
Markets have become highly sensitive to each data point as the Fed has indicated that the timing of rate cuts will depend on economic figures. That puts the spotlight on May…
