Agencies: Fed rate cuts should not be expected to lower 10-year Treasury yields

Investors and Trump should not expect a Fed rate cut to lower the yield on the 10-year Treasury. While DataTrek's research found that the 10-year Treasury yield does fall when the Fed cuts its policy rate, the situation is different if the economy is not in a recession when it cuts rates. While signs of weakness in the U.S. economy are emerging now, the market now believes that there is no sign of a recession yet. Interest rate futures prices show that investors believe the Fed will almost certainly cut rates in September. Against this backdrop, the 10-year Treasury yield may not move. That is not good news for those who are putting political pressure on the Fed to lower interest rates. (Golden Ten)