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 Jamie Dimon Warns of U.S. Debt Crisis as Nation Adds $2.1 Trillion in Three Months READ MORE How Effective Is Gold As a Hedge? History Has an Empirical Answer READ MORE Gold Prices Plunge as Middle East Tensions Ease and Fed Maintains Higher Rates READ MORE De-Dollarization: BRICS Shifts $260 Billion Trade Away from Dollar READ MORE Treasury Yields Dip Ahead of Fed Rate Decision READ MORE Add a Comment Cancel replyYour email address will not be published.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