Reported 5 months ago
Treasury yields surged as traders revised their expectations for Federal Reserve interest-rate cuts to the end of the year due to strong US business activity and a tight labor market. The two-year yield hit 4.955%, its highest since May 2, before slightly easing, causing the yield curve to flatten. Data showing a pickup in US business activity and a decrease in initial jobless claims contributed to the shift in market sentiment, with futures contracts now pricing in a rate cut in December rather than November, and indicating a total of 33 basis points of rate reductions for 2024.
Source: YAHOO