U.S. Treasury investors expect the Fed's policy to shift, and the 10-year Treasury yield may fall below 4%

Odaily Planet Daily News: U.S. bond investors are beginning to bet that the Federal Reserve's policy focus will shift from curbing inflation to responding to slowing economic growth. Under this expectation, U.S. bonds have risen for six consecutive trading days, and the yield has fallen to the lowest level of the year. Morgan Stanley strategists said that if the market's expectations for the Fed's policies change slightly, the 10-year U.S. Treasury yield may fall below 4%. Traders have now resumed their expectations that the Fed will cut interest rates twice this year (25 basis points each), and expect further rate cuts to about 3.65% next year. The bank believes that if the market expects interest rates to fall to 3.25%, the 10-year U.S. Treasury yield may fall below 4%. (Jinshi)