The Rate Cut Nobody Saw Coming: The Bond Market Is Not Waiting for the Fed

In the chart below, a busy one, I’ve highlighted a couple of key areas. To me, they tell the story that some, including me, think of as the “rate cut nobody saw.” Because the Fed didn’t do it, the market did. And it was not overnight rates, it was just a bit further up the yield curve, in the two-to-five-year segment. Here’s why it matters. www.barchart.com A quiet but significant shift is occurring in the fixed-income market. While the Federal Reserve officially held interest rates steady at 3.5% to 3.7 ...