The bond market is flashing a potentially worrisome sign about Fed rate cuts
1. Expectations for Fed rate cuts are influencing bond market behaviors. 2. 2-year Treasury yield has dropped, reflecting confidence in potential rate cuts. 3. 10-year Treasury yield remains stagnant, suggesting investor concerns about inflation. 4. Long-term yields may rise due to fiscal policies increasing U.S. deficits. 5. Inflation expectations are above Fed's target, causing market uncertainties.