According to BlockBeats, on Tuesday, September 4, the U.S. Treasury bond rally continued, with the two-year Treasury bond yield falling from more than 5% at the end of April to around 3.85%. The rise in the past four months is the longest continuous rise since 2021.
The move comes as markets expect the Fed to cut its benchmark interest rate by more than two percentage points over the next 12 months, which would be the biggest reduction outside of an economic downturn since the 1980s.
For bond bulls, this poses a risk: If the labor market, which cooled sharply in July, still shows resilience, the Federal Reserve will be able to cut interest rates at a more moderate pace. The first major test will come on Friday, when the U.S. government releases nonfarm payrolls data for August. Economists expect the data to show a rebound in job growth and a decline in the unemployment rate. (Jinshi)
