Reported 2 months ago
Bond traders are increasingly betting that the Federal Reserve will need to aggressively lower interest rates as fears grow that the U.S. economy is slowing down. Following disappointing employment numbers and the Fed's decision to maintain current rates, two-year Treasury yields have dropped significantly, fueling a bond market rally. As traders speculate that the central bank is lagging in its response to economic shifts, they are anticipating faster cuts in rates, reflecting concerns over a potential recession.
Source: YAHOO