Bond Report: 2-year Treasury yield note hits 1 ½-year low as rate-cut bets accelerate

Treasury prices rose Thursday, pulling yields lower, as investors’ expectations for interest-rate cuts gained ground ahead of the Federal Reserve’s meeting next week.

What are Treasurys doing?

The 2-year note yield TMUBMUSD02Y, -1.75% sensitive to shifting expectations for interest-rate policy, slumped 5.7 basis points to 1.834%, its lowest since Dec. 2017.

The 10-year Treasury note yield TMUBMUSD10Y, -1.02% fell 3.3 basis points to 2.096%, while the 30-year bond yield TMUBMUSD30Y, -0.66% was down 1.5 basis points to 2.608%. Debt prices move in the opposite direction of yields.

What’s driving Treasurys?

Analysts said they expected a rate cut as early as next week, with Vanguard chief economist Joe Davis saying that the central bank could lower rates in June.

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