Bond traders Friday all but abandoned wagers that the Federal Reserve will raise interest rates in May and added to bets that its next shift will be a rate cut as early as June as the US approaches a recession.
While the fever ebbed over the course of the day, renewed concern over the banking sector spurred demand for safe assets and conviction that central banks will have to switch their focus to financial stability from inflation. US Treasury two- to 10-year yields fell to the lowest levels this year, the two-year as much as 28 basis points. The US ...