BlockBeats News, March 12th, bond traders no longer fully priced in the Fed’s rate cut expectations for 2026. Rate swaps tied to the Fed policy meeting date showed that traders on Thursday expected only a 24 basis point rate cut this year, less than a full 25 basis point cut, compared to expectations of around 30 basis points the night before. This change comes as U.S. Treasury yields continue to fall, with the two-year Treasury yield, most sensitive to Fed policy changes, rising by 4 basis points to nearly 3.70%. U.S. bonds faced pressure this week as investors worried that the Middle East conflict would continue to drive up energy prices, leading to a resurgence of inflation. (FXStreet)
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