(Bloomberg) — Treasuries rose, with the 10-year benchmark yield trading near the lowest since March, as traders put their faith in the Federal Reserve to begin an easing cycle in September.
Contracts for the S&P 500 were steady as traders await US retail sales data later for fresh insights on whether inflation and growth have cooled enough to satisfy policymakers who are deliberating when it’s safe to begin bringing down interest rates.
A soft reading of US retail sales could help fuel the rally in Treasuries, according to strategists at UniCredit SpA led by Marco Valli, global head of research. They expect the Fed to deliver three rate cuts this year, starting in September, and recommend positioning for the yield curve to steepen. So-called steepener trades favor buying short dated notes and selling long bonds.
Fed Chair Jerome Powell said Monday that inflation is heading toward the central bank’s 2% goal on the basis of…
