The market is no longer fully pricing in a Fed rate cut this year

BlockBeats News, March 12th, bond traders no longer fully priced in the Fed's expected rate cut in 2026. Rate swaps linked to the Fed's policy meeting date showed that traders on Thursday expected only a 24 basis point rate cut this year, less than a full 25 basis point cut, compared to the expectation of around 30 basis points on Wednesday night. This change comes as U.S. Treasuries continue to fall, with the yield on the two-year Treasury, most sensitive to Fed policy changes, rising 4 basis points to nearly 3.70%. U.S. bonds faced pressure this week as investors worried that the Middle East conflict would continue to drive up energy prices, leading to a resurgence of inflation. (FXStreet)