Analysts: As bets on Federal Reserve rate cuts decrease, pressure on U.S. Treasury bears continues

ChainCatcher message, analysts indicate that the bearish flattening pressure on U.S. Treasuries remains due to the market lowering expectations for a Federal Reserve rate cut. Eugene Leow, an analyst at DBS Group, commented that as the two-year U.S. Treasury yield recently surged, people have reduced their bets on a Federal Reserve rate cut. This veteran interest rate strategist stated, "Meanwhile, as market dysfunction has eased somewhat, the rapid sell-off of long-term U.S. Treasuries has also cooled." Bearish flattening typically refers to a situation where, due to expectations of tighter monetary policy, short-term yields rise faster than long-term yields.