Photographer: Jamie Kelter Davis/Bloomberg Bond investors’ overarching wager on the path of the Federal Reserve and the Treasuries market in 2026 looks like it has room to run. Most Read from Bloomberg A much-anticipated employment report on Friday showed job growth was below forecasts last month, leaving intact expectations for additional Fed interest-rate cuts to support the economy. The result confirmed confidence in bets that short-maturity Treasuries, which are the most sensitive to the central ban ...

Group 1 - The Federal Reserve is expected to announce a quarter-point interest rate cut, with a small chance of a half-point reduction due to signs of slowing US job growth [2][4] - Market expectations have priced in interest rate cuts extending into 2026 to mitigate recession risks, leading to lower Treasury yields and record highs in US stocks [3][7] - The Fed's communication, particularly regarding labor and inflation, will be closely scrutinized to determine if a more cautious approach to easing policy is forthcoming [4][6] Group 2 - Benchmark 10-year Treasury yields are at their lowest since April, while the S&P 500 Index is near historic highs, and the Nasdaq 100 Index has recently achieved its longest gain streak in over a year [7] - Options traders are preparing for potential volatility, anticipating a 1% swing in the S&P 500, which would be the largest movement in about three weeks [8]