Treasury Market Is Fully Prepared for a Cut

Core Insights - The stock market is reacting positively following the Federal Reserve's decision, indicating a potential shift towards lower interest rates [1]. Group 1: Federal Reserve and Interest Rates - The 2-year yield has decreased by 0.246 percentage points since Fed Chair Jerome Powell's speech at the Jackson Hole Economic Symposium, signaling market readiness for interest rate cuts [2]. - Currently, the 2-year yield stands at 3.55%, with expectations that it may decline further after the Fed's decision, as it has been trending below the key support line of approximately 3.6% [3].