Market Trends - The yield curve exhibits unusual behavior with 30-year Treasury yields rising while shorter-term yields are falling, a pattern last seen in 2001 [1][2] - The Federal Reserve has cut short-term interest rates by 100 basis points since September 2024, contributing to lower short-end yields [2] - Further easing by the Federal Reserve is anticipated, potentially reaching 50 basis points in 2025 [2] Investment Risks and Opportunities - Longer-term yields have increased, with 30-year Treasuries exceeding 5%, a level unseen since 2007 [3] - Investors are demanding higher yields for longer-dated bonds due to concerns about US fiscal policy, growing federal debt, and potential future inflation [3] - Uncertainty surrounds the government's future debt issuance and market demand to absorb it without further yield increases [4] Economic Outlook - Falling short-term yields reflect expectations for additional Federal Reserve rate cuts [4] - Economic uncertainty is potentially linked to recent trade conflicts and tariff discussions [4]
Why Have Markets Gone Cold on Long-Term Treasuries? | Presented by CME Group
Bloomberg Television·2025-06-13 20:52