© Reuters. FILE PHOTO: A trader watches U.S. Federal Reserve Chairman Jerome Powell on a screen during a news conference following the two-day Federal Open Market Committee (FOMC) policy meeting, on the floor at the New York Stock Exchange (NYSE) in New York, U.S.,
By Davide Barbuscia
NEW YORK (Reuters) – As bonds emerge from a historic selloff, some investors expect better times in the U.S. fixed income market next year – as long as the Federal Reserve’s rate cuts play out as anticipated.
A fourth-quarter rally saved bonds from an unprecedented third straight annual loss in 2023, following the worst-ever decline a year earlier. The late year surge came after Treasuries hit their lowest level since 2007 in October.
Fueling those gains were expectations that the Fed is likely finished with rate increases and will cut borrowing costs next year – a view that gained traction when policymakers unexpectedly penciled in 75…
