Analyst: The risk of US Treasury yields repeating last September's post-Fed rate cut scenario is limited

Jinse Finance reported that Dario Messi, Head of Fixed Income at Julius Baer, said that there are concerns that the scenario of a rise in long-term US Treasury yields after a 50 basis point rate cut by the Federal Reserve in September 2024 could repeat itself. However, this time the risk of such a recurrence is limited. Although there are some reasonable arguments, the current starting point provides more of a buffer for such developments, and the risks are more limited at present. Currently, the 10-year US Treasury yield is higher than it was when the Federal Reserve began cutting rates in September 2024.