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 RBI Relocates 100 Tons of Gold from UK to India, More Expected READ MORE Geopolitical Tensions, Not Interest Rates, Now Seen as Main Risk to U.S. Economy READ MORE US Debt and the Rising Specter of Bond Vigilantes: A Financial Stability Threat? READ MORE Mortgage Rate Decline Prompts Spike in Refinancing Applications READ MORE Crude Oil Rally Continues: Third Weekly Gain as Middle East Tensions Escalate READ MORE Add a Comment Cancel replyYour email address will not be published.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