(Bloomberg) — Treasuries rose after another Federal Reserve official hinted that an interest-rate cut could come as soon as next month, extending gains stoked by haven demand after the US bombed nuclear sites in Iran over the weekend.
US government debt wiped out its early losses on Monday after Fed Governor Michelle Bowman said she could support a rate cut in July if inflation remains subdued, echoing comments by Christopher 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 September move as more likely.
Earlier in the session, Treasuries had fallen alongside other global bonds as the escalating conflict in the…
