U.S. Treasury yields rise after Fed announces interest rate cuts

U.S. Treasury yields fell weekly for the first time since mid-August, amid Fed Chairman Jerome Powell's expectations of a more aggressive rate cut. On Friday, Treasury yields rose 1 to 3 basis points for each term, continuing the upward trend that the Federal Reserve announced a 25 basis point cut on Wednesday. The benchmark 10-year Treasury yield rose slightly to 4.12%, the highest level in two weeks. Powell said at a press conference after the policy decision that policy makers will decide on future monetary policies based on the actual situation of the "sequence". This position weakens market expectations for the Fed's rapid rate cut, although the interest rate swap market still expects the Fed to cut two more interest rates this year. Amar Reganti, a fixed income strategist at Hartford Funds, noted that the bond market was extremely optimistic in terms of sentiment and positions before the Fed meeting. Although the Fed did implement interest rate cuts and may cut rates again in the future, this is not consistent with current market expectations. Previously, signs of weak labor markets have prompted market betting that policymakers will quickly reduce borrowing costs, pushing up U.S. Treasury prices, despite inflation still above the Fed’s target. However, the post-conference sell-off ended this uptrend.