US Bonds Rally With Global Peers as Trade War Spurs Safety Bets

US Treasury yields held near the lowest levels in several weeks after comments by Federal Reserve Chair Jerome Powell left intact expectations that the central bank will cut interest rates further at each of its two remaining policy meetings this year.

Market reaction to Powell’s comments at the annual meeting of the National Association for Business Economics was limited, leaving yields across maturities narrowly mixed on the day. Earlier, they declined by three to four basis points to the lowest levels in at least several weeks as escalating trade tensions between the US and China stoked concern that economic growth will falter, sparking gains for government bonds globally.