Liz Capo Mccormick

President Donald Trump's power grab at the Federal Reserve has sounded alarms across the monetary policy world – but not in one corner of the bond market where they might have made a difference.

Treasuries gained after a reading on inflation came in as expected, leaving the Federal Reserve on track to continue cutting interest rates next month.

The big question for bond investors in the days ahead is whether the monthly US jobs report will shake their already-wavering conviction in another Federal Reserve interest-rate cut as soon as October.

Treasuries were set to close out a third straight quarter of gains Tuesday as a pending US government shutdown threatens to slow economic growth, boosting the case to buy bonds.

DoubleLine Capital says the popular strategy of betting on a steeper Treasury yield curve has plenty of room to run with the political gridlock in Washington only lending support to the trend.

October 3, 2025 DoubleLine Capital says the popular strategy of betting on a steeper Treasury yield curve has plenty of room to run with the political gridlock in Washington only lending support to the trend.

Treasuries yields were poised for their biggest declines in a month, as the US government shutdown delayed key economic reports and left investors questioning how the Federal Reserve will navigate its next moves.

Bond investors have ridden a profitable playbook this year to score big wins on Federal Reserve interest-rate cuts and tumbling short-term US yields.

Treasury traders are turning to betting markets for signals on the length of the US government shutdown in the absence of economic data to guide interest rate expectations.

The world’s biggest bond market has been stuck in a rut, but traders are preparing for what could be a whirlwind of action once the US government shutdown ends and unleashes a flood of key economic data.