Fixed income

Wall Street are paring back bets on aggressive policy easing as the U.S. economy remains robust and Fed officials have sounded a cautious tone over the pace of future rate decreases.

Treasuries rallied the most in two weeks as tumbling oil prices eased concerns about an uptick in inflation.

Treasuries are sliding after companies added more jobs than expected last month, sending a mixed signal to traders who are watching the labor market for signs the Federal Reserve needs to aggressively cut interest rates.

There's been a marked change in trading volume over the past four years at that time as well as a drop in transaction costs that coincide with the growth of passive funds that track index changes.

After persisting for as long as two years in the U.S., the so-called inversion in yield curves — an unusual situation where rates on short-term debt exceed those of their longer-term counterparts — is unwinding in many parts of the world. 

Treasuries have returned 1.7% this month through Aug. 28, on pace for a fourth straight monthly gain, according to the Bloomberg US Treasury Total Return Index.

Wall Street strategists are recommending taking advantage of declines in market-based gauges of future inflation to build up protection on the cheap.

As Treasuries advance for a third-straight month, investors are fully pricing in at least two quarter-point rate reductions this year, slightly more than what policymakers have telegraphed.

Third-party origination operations are also going to Mr. Cooper in the $1.4 billion deal, in which the seller cited interest in improving its capital position.

Both Vanguard Group Inc. and Fidelity International have said a Republican sweep in November would pose the greatest risk to bonds by expanding Trump's ability to implement his agenda, some of which is also expected to contribute to higher inflation.

Investors are set to start the week scrambling to decide if President Joe Biden's decision to end his reelection campaign and endorse Vice President Kamala Harris increases or decreases Donald Trump's chances of regaining power. 

The resilience of the equity market has been underpinned by optimism the economy has withstood the worst of Fed tightening.

Shares of real estate companies jumped as much as 3.1% Thursday for their biggest intraday gain of 2024, climbing to their highest level since March as investors snap up homebuilder, digital and commercial real estate stocks alike.

The U.S. 30-year yield reached the highest level in a month on Monday amid predictions that a Trump presidency would lead to higher inflation.

Potentially limiting the Federal Reserve's ability to cut rates is the growing view that the economy's so-called neutral rate — a theoretical level of borrowing costs that neither stimulates nor slows growth — is much higher than policymakers are currently projecting. 

Radian joins existing shareholders in the new financing, which adds to a Series A round of $19.8 million conducted in 2020.

Like some other servicers, it recorded a positive change in valuations during the first quarter, contrasting a negative adjustment in the previous period.

The digital lender disclosed a prolonged low stock price could have forced it to redeem a $528 million convertible note from sponsor SoftBank.

The surprisingly strong U.S. economy has driven Treasury yields to the highest since late November as investors dial back bets on interest-rate cuts, wagering that policymakers will be wary of easing policy prematurely.

The board has reduced some aspects of Rithm CEO Michael Nierenberg's pay, but also significantly raised the performance-based component.