by Ruth Carson and Matthew Burgess
Global bonds rallied Tuesday, echoing overnight gains in US Treasuries, as bets for an early Federal Reserve interest-rate cut bolstered the appeal of sovereign debt.
Yields on Australian and New Zealand 10-year bonds fell at least eight basis points after data showed US factory activity shrank in May at a faster pace as output came close to stagnating. Yields on Japan’s 10-year notes retreated two basis points ahead of a ¥2.6 trillion ($16.6 billion) debt auction later Tuesday. Elsewhere, South Korean securities also advanced.
The renewed optimism in bonds may be tested in the coming days as a raft of employment figures shed light on whether the US jobs market is cooling sufficiently to warrant policy easing. Traders’ previous bets for Fed rate cuts proved to be premature after Chair Jerome Powell stressed the need for more evidence that inflation is on a sustained path to the 2% goal before reducing borrowing costs.
Rate decisions by the Bank of Canada and European Central Bank will also be on traders’ radar.
“Investors seem to be happy to scale in as cuts get closer and closer,” said Robert Thompson, macro rates strategist at RBC Capital Markets in Sydney. “Not just from the Fed though — this week of course is about the BOC and ECB, both of which we and markets expect to kick off cutting cycles.”
Treasury 10-year yields edged up two basis points to 4.41% on Tuesday after sliding 11 basis points on Monday. Upcoming US jobs opening data due Tuesday may also fuel renewed demand for bonds if the numbers trail economists’ expectations.
“Levels had gotten cheap last week,” said Martin Whetton, head of markets strategy at Westpac Banking Corp. “Lately it has been a challenge to string two consecutive days of gains for fixed-income markets together but we’ve just had them.”
Copyright Bloomberg News
Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.
A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.
NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.
Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.
Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
