The ICE BofA MOVE Index, a measure of expected fluctuations in yields, hit its lowest level since early 2022, indicating stabilization in the US Treasuries market after months of volatility.
Government bonds have faced volatility due to President Donald Trump’s tariff threats and concerns over increased fiscal spending, although recent auctions for US 10-year and 30-year bonds showed strong demand, signaling optimism.
The auction of 30-year Treasuries was well received, easing some concerns according to Mohit Kumar, but fiscal worries persist, with 10-year yields rising on Friday, potentially leading to a second consecutive week of declines.
Market watchers are keeping an eye on the US government's budget balance release for June and its debt management strategies. Inflation concerns from tariff hikes and interest rate expectations by Federal Reserve officials, including potential rate cuts, continue to impact bond markets.