Global bonds surged Wednesday on news that the US and Iran had agreed to a ceasefire, pausing a war that roiled markets for weeks by delivering the worst oil shock in years.
Traders boosted expectations for the Federal Reserve to cut interest rates this year — and raised the specter of a reduction before the central bank’s next meeting — as the US administration’s tariffs ignite fears of a global recession.
Bond traders are bracing for wilder market swings in the US than in Europe, as signs the world’s largest economy is faltering fuel bets on a jumbo interest-rate cut from the Federal Reserve.
