(Bloomberg) — A rally in Treasuries extended into a seventh straight day, as traders looked to upcoming jobs data to justify increasingly aggressive bets on a rapid succession of interest-rate cuts.
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Markets now see the Federal Reserve delivering three consecutive quarter-point cuts in September, November and December — and are pricing a more than 30% chance that one of those reductions will be 50 basis points.
The policy-sensitive two-year yield slumped to its lowest in 14 months, while rates on the benchmark 10-year security held below 4% after falling to that level on Thursday for the first time since February.
The sharp recalibration in expectations for US rates came after the Fed held rates again this week. While Federal Reserve Chair Jerome Powell signaled that central bank officials are on course to cut interest rates at their next meeting, economic reports on Thursday showed rising jobless claims and…
