(Bloomberg) — US Treasuries closed out a third-straight positive week in a rally fueled by bets the Federal Reserve is ramping up to cut rates at least twice this year.
The Bloomberg US Treasury index posted a 0.8% return for the week in its best run since early April. It’s now on track for its biggest monthly gain since February.
The advance has been driven by several economic data points that reinforced rate-cut wagers and by speculation President Donald Trump will name a more dovish Fed chief. Fed officials Christopher Waller and Michelle Bowman have also signaled in recent days they’d be open to lowering rates as soon as the next meeting.
“The market really got excited on the Fed dove narrative,” said Gregory Peters, co-chief investment officer at PGIM Fixed Income. That now “puts data more at the fore.”
The gains for the week came even after the bonds slipped on Friday. Yields on maturities across the curve…
