Cooling Inflation Sparks Treasury Rally, Reshaping Fed Policy Outlook Treasury yields experienced a significant decline following the release of favorable inflation data, which has increased market expectations for at least two Federal Reserve interest rate cuts in 2024. The drop in yields was observed across all maturities, with short-term rates particularly affected due to their sensitivity to Fed policy changes. Traders have now priced in a high probability of a rate cut in September, with some analysts predicting up to three cuts by year-end. This shift in market sentiment has led to a rally in Treasury bonds, potentially impacting upcoming auctions and reflecting growing investor confidence in a more dovish Fed stance in response to cooling inflation. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Ukrainian Drones Strike Deep into Russia, Hitting Multiple Air Bases READ MORE Central Banks Tread Cautiously in Final Stretch of Inflation Battle READ MORE Asian Gold Demand Surges Despite Near-Record Prices READ MORE Housing Costs Defy Inflation Trends, Challenging Federal Reserve's Targets READ MORE Social Media Sparks Gold-Buying Frenzy in Iran READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment