From Quiver Quantitative:

Bond traders have shown a bullish outlook amid speculation of upcoming Federal Reserve rate cuts, leading to a strong bond market early in 2024. Despite a temporary dip in bond prices following strong job growth data, investors capitalized on 4.1% yields of 10-year Treasury bonds, marking a significant market shift and growing belief in recovery. Firms like JPMorgan Asset Management see this as a buying opportunity. The Fed’s policy plays a critical role as they balance the need for economic growth against inflation risks. The bond rally’s success hinges on a dovish Fed policy and confirmation of lower yields later in the year.



Read more: Traders Capitalize on High Yields with Confidence in Fed Cuts