Bond ETFs dropped after Federal Reserve Chair Jerome Powell suggested that another rate cut in December is not guaranteed, contrary to market expectations. The Fed cut rates by 25 basis points but Powell’s cautious tone caused yields to surge. The 2-year Treasury yield rose to 3.6% and the 10-year climbed to 4.07%. The iShares 20+ Year Treasury Bond ETF fell 1% and the iShares 7–10 Year Treasury Bond ETF dropped 0.65%. Powell mentioned risks in inflation and employment, and the government shutdown as a challenge. Markets still anticipate three more rate cuts by mid-2026 based on economic data.

Read more at Yahoo Finance: Bond ETFs Slide as Powell Pushes Back on Rate Cut Expectations