Expectations of Fed rate cuts persist, driving a slight decline in US Treasury yields

ChainCatcher news, according to Golden Ten Data, despite the lack of immediate new catalysts, U.S. Treasury yields declined during the midday European trading session as expectations of Federal Reserve interest rate cuts continued to dominate market sentiment. Daniel Takieddine, an analyst at Sky Links Capital Group, pointed out that the market has fully priced in the prospect of a 25 basis point rate cut by the Federal Reserve next week and in each of the next two years, as expectations for a more accommodative policy rise. This could continue to drive yields lower. Tradeweb data shows that the yield on the two-year U.S. Treasury note edged down by 0.3 basis points to 3.459%, while the yield on the ten-year U.S. Treasury note fell by 1 basis point to 3.977%.