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- Treasury bonds have erased this year's losses amid a rebound from their historic collapse.
- After falling as much as 3.3% earlier this year, the Bloomberg US Treasury Index is now roughly flat.
- The rally comes as optimism grows that the Federal Reserve is done hiking rates and will pivot to cuts next year.
Treasury bonds have erased this year's market losses amid mounting optimism that monetary policy could soon turn dovish.
After falling as much as 3.3% earlier this year, the Bloomberg US Treasury Index is now roughly back where it was at the end of 2022.
This comes after Treasurys lost 2.3% in 2021 and a record 12.5% in 2022, when the Federal Reserve began its aggressive rate-hiking campaign to rein in high inflation.