Treasury yields remain steady as investors await Fed’s policy meeting
By: cryptosheadlines|2025/05/07 06:00:04
0
Share
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com U.S. Treasury yields held high on Monday as Investors focused on Wednesday’s looming Fed policy meeting. The 10-year yield remained three basis points higher at 4.351%, while the 2-year yield moved to 3.843%. Investors expect a rate cut on Wednesday, with the CME FedWatch tool data showing an above-96 % probability of a 25-basis-point cut and a 34.5% chance of a 50-basis-point cut. Treasury yields reveal market sentiment, and their steady nature suggests optimism.10-year Treasury yield rises ahead of the Fed policy meetingThe US 10-year Treasury note rose by three basis points to 4.37% on Tuesday, marking its highest level. Investors monitor trade tensions closely as they await the FOMC meeting decision tomorrow.At one point, the 10-year yield even moved back above the Fed Funds Rate, effectively uninverting the curve, while the 2-year yield rose to meet the Fed Funds Rate, pricing out any rate cuts for the year. Since then, amid a clear growth slowdown, the 2-year yield has come down... pic.twitter.com/3rwTORziCA— Apex Macro Research (@APM_Research) May 4, 2025The Fed is expected to cut the rates to slow inflation and improve the economy. Markets are watching for any signal regarding future policy direction and the central bank’s assessment of President Donald Trump’s economic impact on trade policies. Trade negotiations between Asian countries and the U.S are expected to return this week. The ISM services report showed a sharp expansion in activity and cost pressures, confirming the strength viewed in last week’s jobs report.Market is engaged even as trading slows down towards Labor Day due to the upcoming Treasury auctions, including $70 billion in five-year notes. The potential Fed rate cuts revealed a shift in monetary policy from fighting inflation to boosting the economy. The move reflects global trends where central banks are focusing on economic stimulation. Official government data revealed a minimal impact on gross domestic product growth. First quarter figures showed the effect of companies rushing to import goods ahead of expected levies placed by President Donald Trump.Soft data, such as consumer and business sentiment, has plummeted sharply compared to the complex economic data, which greatly reflects the impact of tariffs. The Fed is in a wait-and-see mode, with asset prices and investor expectations for monetary policy fluctuating daily without the real outlook data.Source: StatistaFed expected to cut rates amidst Trump’s pressure on Powell to reduce interest ratesThe FOMC meeting comes ahead of Trump’s attempts to pressure the Fed to lower rates. The US president has challenged the Central Bank’s independence from the executive branch, with the White House possibly firing Powell at some point.The President attacked the Fed Chair when markets fell last month, saying he could fire him. He added that Powell would seek to challenge the central bank’s political independence and undermine inflation-fighting credibility.The President of the U.S. backed off the threats after stock prices recovered; however, his administration has continued to pressure the central bank to ease policy. Scott Bessent, the Treasury Secretary, revealed that last month’s drop in Treasury yields signaled to the market that the Fed would not lower rates fast enough despite Trump’s pressure. When Trump flagged the employment data on Friday, he said the inflation fears are misplaced. Powell and other policymakers have emphasized that they are in no rush to react as inflation exceeds their 2% target.China revealed on Friday that it’s looking into the possibility of beginning trade talks with the U.S. A statement from the country’s commerce ministry showed that U.S officials reached out through relevant parties several times to start tariff negotiations. The statement also revealed that if the U.S was willing to talk, it should show sincerity and be prepared to correct the wrong practices seen earlier and cancel the unilateral tariffs.Chinese authorities said failure to remove all unilateral tariffs would further compromise the mutual trust forged over the years between the two countries. China’s current retaliatory levy stands at 125% against the 145% slapped on them by the U.S. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register NowSource link
You may also like

a16z: AI is making everyone 10x more productive, but the true winner has yet to emerge
Institutional AI and Retail AI "Better Integration" is an Inevitable Trend.

Why did the star Web3 project Across Protocol choose to abandon DAO?
The proposal for Across to privatize itself is a rare move, but it comes at a time when the industry is beginning to recognize that DAOs are a difficult organizational structure to operate.

In fact, ETH scaling is a major benefit for L2
ETH has finally admitted defeat—its Rollup-centric roadmap is unworkable, while the monolithic scaling solutions adopted by blockchains like Solana have proven to be correct.

Memories: 10 Key Contributions of the TON Core Team That Few People Knew in the Early Days
Every line of code, every tool we build, every sleepless night spent maintaining the network—these efforts have laid the foundation for TON's development today.

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?
The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.

BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?
This article explains how BIP-360 reshapes Bitcoin's quantum defense strategy, analyzes its enhancements, and discusses why it has not yet achieved full post-quantum security.

50 million USDT exchanged for 35,000 USD AAVE: How did the disaster happen? Who should we blame?
Due to a fatal flaw in the transaction path, a $50 million DeFi operation was executed with almost zero protection, resulting in nearly the entire amount of funds evaporating in a tiny liquidity pool.

The Cryptographic Past of the Middle East
Reality is often more exciting than fiction.

Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin
When the baby boomer generation collectively sells off, who will become the "greater fool" in the next round of asset crashes?

Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech
AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.

Vitalik wrote a proposal teaching you how to secretly use AI large models
Vitalik believes that in the AI era, users should not have to give up their identity to use an AI tool.

On the eve of the explosion of on-chain options
Options are becoming a new anchor in the cryptocurrency market.

WEEX AI Hackathon: How Did This AI Trading Winner Succeed?
A self-taught AI trading enthusiast achieved top-10 results at the WEEX AI Hackathon. Learn about the mindset, AI tools, and lessons behind this impressive performance.

One Balance to Rule Them All: Gravitas' On-Chain Prime Broker Ambition
Forty years ago, a technological revolution broke the isolation of information, reshaping Wall Street. Forty years later, Grvt aims to break the isolation of capital with an on-chain prime brokerage model.

That person who cashed out at the NFT peak is now selling a new shovel in the OpenClaw craze
A skilled person never picks the table, they eat meat with every bite.

Inter-generational Prisoner's Dilemma Resolution: The Nomadic Capital and Bitcoin's Inevitable Path
When the Baby Boomer generation collectively sells off, who will be the "bag holder" in the next asset crash?

Upstream and downstream are starting to fight, all for the sake of everyone being able to "Lobster"
「Lobster」 may not be a mature product yet, but it has already ushered in a new era of 「AI Assistants」.

Circle and Mastercard Announce Partnership, the Next Stage for the Crypto Industry Belongs to Payments
Stablecoins are transitioning from a speculative tool to real financial scenarios such as payments, cross-border transfers, and store of value.
a16z: AI is making everyone 10x more productive, but the true winner has yet to emerge
Institutional AI and Retail AI "Better Integration" is an Inevitable Trend.
Why did the star Web3 project Across Protocol choose to abandon DAO?
The proposal for Across to privatize itself is a rare move, but it comes at a time when the industry is beginning to recognize that DAOs are a difficult organizational structure to operate.
In fact, ETH scaling is a major benefit for L2
ETH has finally admitted defeat—its Rollup-centric roadmap is unworkable, while the monolithic scaling solutions adopted by blockchains like Solana have proven to be correct.
Memories: 10 Key Contributions of the TON Core Team That Few People Knew in the Early Days
Every line of code, every tool we build, every sleepless night spent maintaining the network—these efforts have laid the foundation for TON's development today.
2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?
The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.
BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?
This article explains how BIP-360 reshapes Bitcoin's quantum defense strategy, analyzes its enhancements, and discusses why it has not yet achieved full post-quantum security.