Traders eye Treasuries rally on US data deluge

Bets on a Treasuries rally are being fuelled by expectations that data will show economic weakness, prompting the Federal Reserve to cut interest rates in December. — Bloomberg

WASHINGTON: Bond traders are piling into Treasury options targeting a drop in the 10-year yield below 4% in coming weeks, betting a cascade of data will show the US economy is weakening. 

Investors are bracing for updates on the labour market and inflation as the US government prepares to reopen after the longest shutdown in history.