2-year Treasury yield is rising, decreasing likelihood of Fed rate cut

From Investing.com: 2024-10-29 07:33:00

The rise in Treasury yields suggests a lower chance of a rate cut at the next policy meeting. Despite this, the 2-year rate still remains below the current Fed funds effective rate range. The recent increase in the 2-year yield has narrowed the spread relative to Fed funds, indicating a decrease in market confidence for rate cuts. However, Fed funds futures are still pricing in a 90% probability of a rate cut next month. Mixed signals from markets may be resolved after this week’s economic reports, including data releases on Thursday and Friday. October labor market data could be distorted by temporary factors, making it difficult for the Fed to change policy based on the report.



Read more at Investing.com: 2-Year Treasury Yield: Upward Trend Suggests Waning Odds for Another Fed Rate Cut