US bond yields decline ahead of the Fed’s decision

US Treasury bond yields have been declining since the start of the Federal Open Market Committee meeting earlier on Tuesday, with markets awaiting the FOMC decision to be issued, Wednesday, amid expectations that the Federal Reserve will keep the interest rate unchanged.

Expectations of a rate cut by the Federal Reserve at the conclusion of the Federal Open Market Committee meeting, which ends next Wednesday, fell to 1.00%. Expectations of the Federal Reserve rate cut at the next April 30-May 1 meeting were 9%, and 65% for the following meeting on June 11-12, which increased the upward momentum of the US currency and exacerbated the pressures that gold is suffering from.

Expectations that the Federal Reserve is close to cutting interest rates next June were among the most important reasons behind the decline in yields on sovereign bonds, which benefit from the possibilities of stabilizing or raising interest rates.

Ten-year US Treasury bond yields fell to 4.296% compared to the last daily close, which recorded 4.332%. Returns rose to their highest level on Tuesday’s trading day at 4.339%, compared to the lowest level of 4.294%.