Treasuries Rally as Powell Touts Fed’s Limits on Supply Shocks

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Pedestrians near the Treasury building in Washington.Treasuries rallied after Federal Reserve Chair Jerome Powell said that President Donald Trump’s sweeping tariffs resulted in a one-time price bump and that the central bank has little control over supply shocks such as the war-driven surge in oil prices. The moves in the $31 trillion US government debt market extended as Powell spoke, with earlier advances tied to concern the Middle East conflict will derail global economic growth. That has revived demand for beaten-down sovereign debt around the world — and lured interest from the likes of Pacific Investment Management Co., JPMorgan Chase & Co. and Columbia Threadneedle Investments.