SGOV - Is The Bond Market Rethinking The Outlook For Rate Cuts?

2024-06-05 14:15:00 ET

Summary

• After yesterday’s news that US job openings fell to a three-year low in April, the data fueled the incentive for the bond market to reassess the view that the Federal Reserve will keep interest rates higher for longer.
• The 2-year rate continues to trade well below the Fed funds target range.
• A key test for the new round of dovish expectations arrives on Friday, when the government publishes nonfarm payrolls data for May.

Here we go again. After yesterday’s news that US job openings fell to a three-year low in April, the data fueled the incentive for the bond market to reassess the view that the Federal Reserve will keep interest rates higher for longer....

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