“The market traded well overnight as equities came off and it feels like a little bit of a bid here,” Justin Lederer, an interest rate strategist at Cantor Fitzgerald, told Reuters.
Bonds are strengthening with policy uncertainty “putting pressure on equities,” Antoine Bouvet, an interest-rates strategist at Mizuho International Plc, told Bloomberg. There is “little prospect for this uncertainty to abate in the near term. Month-end flows should be supportive in illiquid markets” for debt.
The recent political risks compounded investor fears in recent trading sessions. In Washington D.C., a partial government shutdown continues. Furthermore, President Donald Trump repeatedly criticized the Federal Reserve over its interest rate hikes.
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