US Treasury yields fall as traders expect Fed pause
United States Treasury yields extended their decline from Wednesday to Thursday as CME FedWatch Tool showed that there is an over 50% probability of the federal funds rate remaining in its current range until late July when the first rate cut is predicted.
Yesterday, Federal Reserve Chair Jerome Powell admitted that there were discussions about a halt in rate hikes due to banking sector instability, but added that policymakers "don't see rate cuts this year" and that they are not in the Fed's base case.
The return on the 10-year Treasury note decreased by 6.2 basis points to 3.438% at 12:38 pm ET and the yield on the two-year note dropped 11 basis points to 3.871% at the same time. However, the return on the 30-year bond rose by 1.8 basis points to 3.715% at 12:38 pm ET.