(Bloomberg) — The world’s largest bond market rose after the latest batch of economic reports reinforced speculation the Federal Reserve will be able to cut interest rates this year to prevent a bigger US slowdown.
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Treasuries climbed across the curve as data showed recurring applications for jobless benefits hit the highest level since the end of 2021 while orders placed with factories for business equipment unexpectedly declined. An index of pending existing-home sales unexpectedly fell to the lowest on record as elevated mortgage rates and high prices discouraged prospective buyers.
To Chris Low at FHN Financial, the slowdown story got stronger.
“Continuing claims inched higher and are now the highest since late 2021 — sending a warning sign that the labor market could be softening,” said Jeff Roach at LPL Financial. “We expect both consumer and business activity to slow in the latter half of 2024,…
