Glen Capelo, managing director of fixed income at Mischler Financial Group, said that a 25 basis point interest rate cut by the Federal Reserve would likely lead to a sell-off in US Treasuries. However, the outcome would largely depend on the tone of Powell's press conference.

Michael Rosen, managing partner and chief investment officer of Angeles Investments, believes the current bond market is pricing in an overly aggressive pace of Fed rate cuts. The market expects the Fed to cut rates by 250 basis points next year, a move that would only be justified in a recessionary scenario. Therefore, he believes that short-term Treasury yields will fall less than the market expects, while long-term yields could even rise from now on.