Bond Traders Trim Two-Year Futures Bets as Tariff Talk Picks Up.

Bond traders are reducing their bets on two-year Treasury futures due to uncertainty surrounding President Donald Trump's tariff plans and their potential impact on inflation. The focus on tariff proposals has intensified, with Trump expanding threats to include China and the European Union. The ultimate decisions on tariffs and their timing will influence market assessments of inflation and potential Fed interest-rate cuts. Traders have been adjusting their positions in response to volatile market conditions, tariff comments, inflation data, and dovish remarks from Fed Governor Christopher Waller. [Extracted from the article]