Govies gain after Dovish statements from the Fed
📍 The largest bond market in the world has recovered after going through tough periods during 2023. Many US debt observers now believe that the route is clear for a true comeback. Early this month, the Bloomberg US Treasury Index moved to a positive return for the year as measured job growth and indications of lowering inflation sparked a rally that sent rates plunging from their highest point in over ten years.
📍 This week will give traders plenty of opportunity to determine whether that cooling trend is intact. Despite the Fed’s message during the last meeting, the market seems to have embraced the idea that slowing economic data will hasten the arrival of market-friendly rate cuts.