Bond Traders Built Up Bets on a Treasury Rally Every Day in July

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Traders are betting on a rally in the $27 trillion US Treasury market as Federal Reserve Chair Jerome Powell casts a spotlight on the importance of US inflation data.

Positioning data every day since July 1 shows traders building up bullish bond wagers ahead of the Fed chair’s testimony to Congress and a reading of the consumer price index this week. Those bets stand to benefit if Powell’s remarks or the inflation data on Thursday bolster expectations for interest-rate cuts this year.