(Bloomberg) — Treasuries booked a fourth-straight week of gains — the best winning streak since March — on building investor confidence that the Federal Reserve will begin cutting interest rates next quarter.
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Rates oscillated Friday ahead of an early market close at 2 p.m. New York, after a report showed the Fed’s preferred gauge of underlying inflation barely rose in November — endorsing a growing narrative that central bankers have successfully broken the back of price pressures and will aggressively ease monetary policy in 2024.
That zeitgeist has prompted money managers to pile into Treasuries in recent weeks, with Citigroup Inc. describing positioning as now “at extremes.” Asset managers have the most bet on ultra-long bond futures — which track the 30-year maturity — since August 2019, data from the Commodity Futures Trading Commission through Dec. 19 show.
Swaps contracts tied to Fed…
