to cut interest rates this week. The question is whether the bond market has fully priced in the start of policy easing?
The fund has been on a mostly non-stop rally since May, presumably animated by rising confidence that the central bank will announce a rate cut on Wed., Sep. 18. A key debate for how bonds fare in the weeks and months ahead is linked to expectations for the US economy. “Weak enough retail sales on Tuesday could push the Fed to cut 50 basis points,” says Andrew Hollenhorst, chief economist at Citi.
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