Banking Sector Woes Propel Treasury Rally, Rate Cut Forecasts Treasury yields saw a significant drop on Thursday, driven by a continued downturn in U.S. financial stocks, which fueled trader speculation of an accelerated timeline for Federal Reserve interest rate cuts. The five-year U.S. Treasury yield decreased by up to 9 basis points, reaching its lowest point since June at 3.75%. This movement reflects a growing anticipation among traders for a more substantial total reduction in Fed interest rates throughout the year, with swap contracts even hinting at the possibility of rate cuts commencing as early as March. This shift in expectations comes despite Federal Reserve Chair Jerome Powell’s recent remarks suggesting such moves were unlikely in the near term. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Evergrande's Liquidation: A Significant Turn in China's Property Crisis READ MORE Risk of a global recession is minimal, IMF economist says — would take ‘a lot to derail’ READ MORE Are US interest rates high enough to beat inflation? The Fed will take its time to find out READ MORE Schroders Investment Insights: The Case for Gold in 2024 READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment