Institution: Excessive expectations for interest rate cuts, U.S. Treasury bonds enter an overshooting range

ChainCatcher news, Mark Dowding, Chief Investment Officer of BlueBay, an asset management company under the Royal Bank of Canada, stated that the recent rise in U.S. Treasury bonds seems a bit excessive, and the market may have already priced in the impact of the Federal Reserve's interest rate cuts. Given the expectation of an 80 basis point cut in interest rates over the remainder of 2024, we believe this is an overshooting range, with fair pricing suggesting one to two rate cuts. In light of this view, we tend to take a contrarian approach to the recent trend in U.S. Treasury yields. (Jin Shi)