Bond Traders Anticipate 2024 Rally, Expect Fed Rate Cuts

Despite Recent Pullback, Confidence in Bond Market Recovery Grows Amid Expectations of Eased Monetary Policy

Traders are betting on a 2024 bond rally, seizing on elevated yields before the Federal Reserve starts driving down interest rates.
Despite recent pullback, investors are increasingly confident that the bond market is recovering from its worst downturn in decades.
Traders anticipate the Fed may start easing monetary policy as soon as March.
Strategists at TD Securities predict the 10-year Treasury yield will end 2024 at 3%.
The degree of Fed's easing will depend heavily on whether inflation continues to recede.