• 2 months ago
U.S. government bonds have experienced a significant sell-off as the Federal Reserve initiated interest rate cuts for the first time since 2020. Two-year yields surged thirty-four basis points since the Fed's reduction, mirroring trends from 1995 when Alan Greenspan navigated a successful soft landing. Current market conditions suggest that rising yields reflect decreased recession risks and robust economic data, leading to expectations of a slower pace of rate cuts.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02U.S. government bonds have experienced a significant sell-off as the Federal
00:06Reserve initiated interest rate cuts for the first time since 2020.
00:10Two-year yields surged 34 basis points since the Fed's reduction,
00:14mirroring trends from 1995 when Alan Greenspan navigated a successful soft landing.
00:20Current market conditions suggest that rising yields reflect decreased recession risks and
00:24robust economic data, leading to expectations of a slower pace of rate cuts.
00:29For all things money, visit Benzinga.com slash GSTV.

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