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Treasury yields are falling as investors now see a possible July interest-rate cut by the Fed - MarketWatch

1. Treasury yields fell despite geopolitical tensions and U.S. stocks rising. 2. Fed officials are showing dovish views on future interest rate cuts. 3. Traders' odds of a 25 basis points rate cut rose to 22.7%. 4. Inflation concerns and geopolitical risks create mixed signals for yields. 5. Oil prices fell below $70, impacting Treasury yield reactions.

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FAQ

Why Bullish?

The dovish Fed signals can lead to lower 2-year Treasury yields, reflecting reduced rate hike expectations. Historically, similar dovish pivots have corresponded with lower yields.

How important is it?

The article discusses significant factors influencing 2-year Treasury yields, such as Fed commentary and economic indicators, making it important for traders.

Why Short Term?

Recent Fed speeches tend to have immediate effects on Treasury yields. Expect changes in response to Fed decisions in the next few months.

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