Institutions: Fed Rate Cuts Unlikely to Lower 10-Year US Treasury Yields
According to a report by Jinse Finance, investors and Trump should not expect that a Federal Reserve rate cut will lower the yield on 10-year U.S. Treasury bonds. Although DataTrek's research shows that the 10-year Treasury yield does tend to fall when the Fed cuts policy rates, the situation is different if the rate cut occurs without the economy entering a recession. While there are currently signs of economic weakness in the U.S., the market now believes that there is still no evidence of a recession. Interest rate futures prices indicate that investors are almost certain the Fed will cut rates in September. In this context, the yield on 10-year U.S. Treasuries may remain unchanged. This is not good news for those exerting political pressure on the Fed to lower rates. (Jin10)
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