Treasuries are on track for their worst month in more than two years amid signs of economic strength, posturing for next week’s US presidential election and heavy supply of new notes and bonds.
US government debt was briefly buoyed Tuesday by a surprise slide in job openings that was then offset by a jump in consumer confidence. Despite generally stronger-than-expected economic data since the Federal Reserve cut interest rates in mid-September, traders are clinging to wagers on a quarter-point reduction at next week’s Fed meeting.
The recent rout had shaved 2.4% off a key gauge of Treasuries in October as of Monday’s close. That puts the market on track for its worst monthly performance since September 2022 as traders grapple with a slew of risks associated with economic indicators, the Treasury debt supply outlook, the election and the Fed’s next policy announcement.
Michael Mackenzie | Yahoo Finance