Treasury Traders Trim Bullish Bond Bets Ahead of Fed Meeting

Bond traders cut bets on Treasuries over the past week, as markets brace for a Federal Reserve meeting that is expected to shed light on how aggressively the central bank will lower interest rates in coming months.

JPMorgan Chase & Co.’s weekly Treasury client survey showed net long positions shrank to the smallest in two months ahead of Wednesday’s meeting. That suggests investors are less bullish overall, though market-implied expectations for Fed policy have remained steady, with swap contracts pricing in just under half a percentage point of easing by year-end beginning as early as September.

The shift comes as ...