Investors’ expectations for interest rate reductions fall

Their interest rates are reduced by 65 basis points in 2024, which is less than those published by Fed on 19.3.2024, according to a Bloomberg report. Last week, the market and the US Federal Reserve (Fed) were briefly on the same page on the rate of monetary relaxation. It didn’t last long, and state bond investors pay the price. After spending much of this year making bets that were much milder than those of Fed officials, investors have now turned in the opposite direction. They provide for a reduction in interest rates by around 65 basis points in 2024, compared to 75 basis points marked by the average estimate of the forecasts published after the Fed meeting on 19-20 March. According to Bloomberg, reassessment leads investors to request higher rates of return for US government bonds. State bond yields ending in five to 30 years climbed to the highest levels this year (2.4.2024). His performance of 30 years exceeded 4.5% and the 10-year reference bond is higher by nearly 20 basis points in the last two days, at a rate for the longest jump since early February.