Core Insights - The 2-year Treasury yield has rebounded from a low of 3.477% on October 14, 2025, marking its lowest level since September 7, 2022, and is currently at 3.495% [2][3] - Future markets are anticipating two additional interest rate cuts this year, influenced by comments from Fed Chair Powell regarding the labor market and potential for further cuts [3] Treasury Yield Analysis - The 2-year Treasury yield serves as a key indicator for near-term interest rates and inflation expectations, reflecting market sentiment [2] - The recent increase in yields follows a period of low rates, indicating a shift in market dynamics [2][3] Market Context - The market is currently navigating renewed trade tensions with China, which has heightened the attractiveness of 2-year Treasury notes [3]

Monetary Policy - China's central bank is holding back from aggressively easing monetary policy [1] - The central bank is refraining from interest-rate cuts [1] Economic Performance - China's economy recorded its worst month so far this year [1]

Turkey’s central bank said its monetary policy isn’t on a preset path, providing little indication on the size of future interest-rate cuts after it began lowering borrowing costs last month https://t.co/DT62Q7zr5G ...

New Zealand’s jobless rate rose to the highest in almost five years, the latest sign of an economic slowdown that could prompt the central bank to resume interest-rate cuts https://t.co/616jpf6TJv ...

Stocks gain as the US moved closer to trade deals with China, while expectations are rising for interest-rate cuts this year. Get market insight on Bloomberg Surveillance. @tomkeene @davidgura @LisaMateoTV are LIVE on YouTube. https://t.co/m9IglISGoz ...