Traders boosted wagers on US interest-rate cuts, pricing close to 1.25 percentage points of reductions by the end of next year.
Later Tuesday, speeches from Federal Reserve Chair Jerome Powell and other officials could give a crucial steer on the path forward for policy. The outlook has become tricky to gauge amid a US government shutdown and dearth of economic data.
Yields on 10-year German bonds dropped five basis points to 2.58%, the lowest level since July 4, while yields on 10-year UK bonds sank seven basis points to 4.58%, the lowest level since Aug. 14.
The moves show government bonds have retained their traditional role as a haven asset, even as concerns around deficits spur some money managers to pursue the so-called debasement trade. Its adherents are pulling away from sovereign debt — and the currencies they are denominated in — on concern their value will be eroded over time, opting instead for precious metals and…
