Treasury yields decline following Powell’s comments on inflation

US bond yields have been declining since the beginning of daily trading on Thursday, affected by expectations of a rate cut, which highlighted the possibility of limiting the rate cut to only once this year.

Ten-year US Treasury bond yields fell to 4.232% compared to the last daily close, which recorded 4.323%. Yields on these government bonds rose to their highest level on the current trading day at 4.231%, compared to the lowest level recorded at 4.255%.

The markets absorbed these expectations, which shed light on the possibility of rising inflation in the coming period, which led to escalating concerns about the possibility of interest rates continuing at record high levels, which would have led to a rise in government bond yields.

But that did not happen due to expectations expressed by Jerome Powell that inflation may begin to decline in the second half of 2024.