Expectations of a Fed rate cut loomed over the market, with U.S. Treasury yields falling slightly.

Despite the lack of immediate new catalysts, U.S. Treasury yields fell in midday trading during the European trading session as expectations of a Fed rate cut continued to dominate market sentiment. Sky Links Capital Group analyst Daniel Takieddine noted in a research note: "Rising market expectations for Fed easing have fully priced in the prospect of a 25 basis point rate cut next week and in both this year and next, which is likely to continue pushing yields lower." Prior to this, the market awaited inflation data due on Friday. Tradeweb data showed that the two-year Treasury yield edged down 0.3 basis points to 3.459%, while the 10-year Treasury yield fell 1 basis point to 3.977%. (Jinshi)