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 The 21st Century Gold Rush: A Barometer of Global Unease READ MORE Yen's Volatility Complicates BOJ's Rate Hike Plans, Minutes Show READ MORE Oil Markets React to Missile Strike in Damascus Sparks Fear READ MORE BRICS: Scotiabank Says US Dollar To Fall in 2024 READ MORE Fed's Michelle Bowman Emphasizes Caution in Monetary Policy to Counter Inflation READ MORE Add a Comment Cancel replyYour email address will not be published.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