Treasury yields fell as traders assessed the Federal Reserve's lower GDP expectations
2025-06-18 18:26:05
In the June dot plot, Fed officials lowered their expectations for the number of rate cuts by the end of 2027. Even so, with the release of the dot plot, the yield on the two-year Treasury note, which follows the Fed's policy expectations, fell slightly. Traders may be reacting to Fed officials' forecasts for slower economic growth, compared with March estimates. The Fed now expects growth of 1.4 per cent this year and 1.6 per cent next year, compared with March forecasts of 1.7 per cent and 1.8 per cent, respectively.
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