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Bond Market: What Happened to "Higher for Longer"?
After climbing by more than 100 basis points since late summer, Treasury yields plummeted in the early days of November on signs of slowing economic growth and easing inflation pressures. Ten-year Treasury yields dropped from a high of 5.02% to below 4.50% in less than two weeks' time, before rebounding to the 4.60% area. Two-year Treasury yields also declined sharply, with the market now pricing in the potential for the Federal Reserve to start cutting interest rates as early as June 2024, with a total of 100 basis points (or one percentage point) of cuts being priced in by the end of next year. In the middle of ... (full story)