The bond market is reacting unusually to Federal Reserve interest-rate cuts, with Treasury yields rising as rates fall, a trend not seen since the 1990s. The Fed has cut rates by 1.5 percentage points to 3.75% to 4%, with more cuts expected. Despite this, key Treasury yields have not decreased, signaling concerns over inflation and debt. Bond traders worry the Fed is cutting rates while inflation remains high. President Trump’s push for more rate cuts could lead to higher mortgage rates. Market stability remains, but the long-term yield challenge is reminiscent of the Greenspan conundrum.

Read more at Yahoo Finance: Bond Traders Defy Fed and Spark Heated Debate on Wall Street