US Bonds Rally as Economic Data Backs Bets on Two 2025 Fed Cuts

Treasuries gained as a fresh spate of economic data offered signs of ebbing economic activity and dimming inflation, supporting bets that the Federal Reserve will cut interest rates twice this year.

The bond rally on Thursday sent yields down 10 basis points or more for debt maturing in two to 10 years. Longer-maturity yields also fell after earlier approaching 5% on the heels of several large trades. Swaps traders priced in about 55 basis points of easing for the remainder of 2025. The dollar fell.