US Treasuries Soar as Powell Says Risks May Warrant Rate Cut

Treasuries jumped and traders added to bets on a September interest-rate cut after Federal Reserve Chair Jerome Powell indicated a reduction may be warranted to support the labor market.

Yields tumbled as much as 11 basis points across tenors with the two-year notes’ — which are more sensitive to changes in monetary policy — falling to 3.68%, the lowest level in more than a week. Traders immediately boosted wagers on a quarter-point cut next month, pricing in a roughly 85% chance of a move, up from around 65% before Powell spoke.