U.S. Treasury Yields Fall, Bets on 50 Basis Point Fed Rate Cut Resurface
ChainCatcher News: Bets on a 50bps Fed Rate Cut Rise to 43% Next Week
According to Jin10, the CME FedWatch tool shows the probability of a 50-basis-point rate cut by the Federal Reserve next week has increased to 43% from 28% yesterday. This is expected to lead to a weekly decline in US Treasury yields.
This week's CPI and PPI data has supported expectations of a moderate PCE reading at the end of this month, causing some investors to believe the Fed will be more concerned about employment issues.
Meanwhile, The Wall Street Journal reports that officials are considering a more aggressive easing of monetary policy, as they believe inflation has been controlled and are concerned about employment issues.
The 10-year US Treasury is trading near 3.657%, while the 2-year US Treasury is at 3.598%.
