US Treasuries Rally 0.7% in June as Inflation Expectations Collapse
Updated
Updated · Bloomberg · Jun 30
US Treasuries Rally 0.7% in June as Inflation Expectations Collapse
1 articles · Updated · Bloomberg · Jun 30
Summary
The Bloomberg US Treasury Index rose 0.7% in June through Monday, putting the market on track to salvage the quarter and end a five-month performance drought.
Falling inflation expectations drove the rebound, pulling longer-term Treasury yields lower after inflation fears had dominated trading earlier in the quarter.
At the end of May, the index was flat for 2026 after a war-driven oil spike lifted actual and expected inflation and pushed benchmark yields to their highest levels of the year.
That oil surge also forced traders to drop bets on Federal Reserve rate cuts and briefly price in hikes instead, underscoring how sharply sentiment has now reversed.