This year's red-hot bond-market rally looks set for a new burst of bullish support if the Federal Reserve cuts interest rates today, which is widely expected.
US fixed income is already sizzling, with every major component of the bond market posting year-to-date gains, based on a set of exchange-traded funds. The upside bias appears in no danger of faltering, given the outlook for today's policy announcement from the Federal Reserve (scheduled for 2:00 pm Eastern). Fed funds futures are pricing in a near certainty of a rate cut, according to CME data. If correct,