(Bloomberg) — Treasuries held onto their recent gains as traders weighed signs of a resilient US economy against calls for quicker interest-rate cuts from the Federal Reserve.
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US government debt remained stronger across the maturity spectrum on Thursday, though it pared the day’s early gains after data showing growth accelerated by more than forecast in the second quarter. That reading reinforced bets that US policymakers will wait until September to kick off their monetary easing cycle.
Wagers on aggressive easing by the Fed had been rising in recent days amid debate over whether the central bank should act when it meets next week. Former New York Fed President William Dudley said Wednesday that US policymakers should reduce rates at that gathering. And Mohamed El-Erian warned said Thursday that too long a delay on cuts could prove a “policy mistake.” Both were writing as Bloomberg Opinion…
