Invesco, Carmignac Bet Against US Debt, See Limited Fed Cuts

The bond market’s consensus view that the Federal Reserve will cut interest rates at least twice more this year is at odds with US economic resilience, say portfolio managers at Invesco Ltd. and Carmignac, who are betting against Treasuries.

Yields on US government debt are close to their lowest levels in months, after a rally spurred by haven demand amid stock-market jitters and last week’s tame January inflation reading. The bullish tilt suggests many investors expect ebbing price pressures will give officials room to slash borrowing costs later this year on any signs of labor-market weakness.