Archive · 23 Jun 2025
Treasuries Rise as Rate-Cut Bets Grow Following Fed Comments
Treasury bonds went up in price because of expectations of a rate cut.
A Federal Reserve official said they might lower interest rates as early as July if inflation stays down.
Investors are betting the Fed will cut rates before the year ends.
The 10-year Treasury yield is down, and the dollar's value hasn't changed much.
U.S. Treasuries rose after a Federal Reserve official hinted at a possible interest-rate cut in July.
Fed Governor Michelle Bowman stated she could support a rate cut in July if inflation remains subdued.
Traders increased bets on a rate cut of at least 50 basis points before the end of the year.
The benchmark 10-year Treasury yield fell to 4.31%, its lowest in over a week.
The dollar reversed its early gains, trading little changed.
- Who
- Federal Reserve officials and traders.
- What
- The rise in U.S. Treasuries and potential interest rate cut.
- When
- July and the end of the year.
- Where
- United States.
- Why
- Due to comments from Federal Reserve officials about possible rate cuts and economic uncertainty.
- 10-year Treasury Yield
- 4.31%
- 2-year Treasury Yield
- 3.82%
- Probability of July Rate Cut
- Approximately 20%
Sources
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