The rally that has propelled global bonds to their best month since 2008 gathered pace, with Treasuries rising on expectations that the Federal Reserve would be able to begin decreasing interest rates in the first half of 2024.

Two-year yields fell nine basis points to 4.65%, with Fed swaps pricing in a quarter-point rate cut by May. The S&P 500 oscillated near "overbought" levels, with Nvidia leading gains in chipmakers, Tesla whipsawing in the run-up to its Cybertruck event, and Microsoft falling. Oil rose ahead of a high-stakes OPEC+ meeting.

The US economy slowed in recent weeks as consumers cut back on discretionary spending, according to the Fed's Beige Book. GDP increased at the fastest rate in nearly two years, while consumer spending advanced at a slower rate. The Fed's preferred inflation metric, the personal consumption expenditures price index, was revised lower.