Powell pours cold water on "radical interest rate cuts", U.S. Treasury bonds end consecutive rises

According to BlockBeats, on September 19, US Treasury bonds ushered in its first single-week decline since mid-August after Federal Reserve Chairman Powell wiped out market expectations for a "more aggressive rate cut." On Friday, yields in Treasury bonds rose 1 to 3 basis points, continuing the upward momentum that the Federal Reserve announced a 25 basis point cut on Wednesday. The 10-year Treasury yield, as the benchmark, climbed slightly to 4.12%, the highest level in two weeks. Powell said at a press conference after the policy resolution that policy makers will decide on future monetary policies in a "sequence-by-session" manner. This statement has curbed market expectations for a "fast rate cut", although the interest rate swap market still tends to believe that the Fed will cut interest rates twice this year. "Before the Fed's meeting, the bond market was extremely optimistic in terms of sentiment and positions. The Fed did implement a rate cut, and there may be several more in the future, but this obviously did not recognize the current market expectations." Previously, although inflation continued to be higher than the Fed's target, the labor market showed signs of weakness, and the market bets that policy makers will quickly reduce borrowing costs and drive U.S. Treasury prices to continue to rise; and the selling wave after the meeting ended this round of gains. (Jin Shi)