Bonds

Economists surveyed by Bloomberg expect US policymakers to leave their key rate unchanged when they meet next week, though focus will turn to an upcoming reading of consumer price data for May.

The chatbot, powered by OpenAI Inc.'s GPT-4 language model, is an attempt to simplify work flows for traders who often navigate a complex market where liquidity is increasingly waning

Investors can get equity-like returns by investing in short-term publicly traded bonds, which are generating yields of 6% to 8%, Pacific Investment Management Co. executives said.

Traders amped up wagers on a June rate increase to about 40% after Fed Bank of Dallas President Lorie Logan said the case for a pause next month is not clear.

Funding conditions have eased since the height of financial-sector volatility in March, with US new issue concessions and average yields dropping.

Treasury two-year yields slumped as much as 21 basis points and approaching the 4% threshold. Bonds also climbed after data showing JOLTS jobs opening figures.

Analysts have a base-case proxy of 1.2%, accounting for stress in the agricultural sector, which includes higher default levels from the 2006-2009 and 2015-2017 vintages.

Fixed-income trading revenue declined 17%, the firm said in a statement Tuesday, leaving Goldman the only major Wall Street bank so far to have posted a drop for that business.

Two-year Treasury yields slid a percentage point over three days in March, the most since 1982. Gone are the days when inflation was the main menace.

The two-year U.S. rate, which is the most sensitive to monetary policy, slid for a fifth day, its longest streak since July 2022. Economists now assign a 65% probability of a U.S. recession.