The U.S. bond market since December has been dialing back expectations for Federal Reserve interest rate cuts, as the above chart shows.
Similarly, rates investors “do not expect a large shift in policy guidance” at next week’s Fed policy meeting, BofA Global rates strategists wrote, in a Wednesday client note.
They instead have been focused on “Trump policy changes & the economic impact vs the Fed right now.”
The 10-year Treasury yield was 2 basis points higher in early action Wednesday, near 4.58%, well below a recent 4.8% high.