U.S. Treasury bonds fall as Powell dampens market hopes for significant rate cuts

Jinse Finance reported that the first interest rate cut by the Federal Reserve in nine months triggered a rise in US Treasury bonds, as the market expected the Fed to launch a series of aggressive rate cuts to support the economy. However, Fed Chairman Powell stated that Wednesday's rate cut was a risk management decision, and there is no need to adjust rates rapidly; the Fed will make decisions on a meeting-by-meeting basis. This cautious statement dampened market hopes for significant rate cuts, causing US Treasuries to fall and yields to rise. Gennadiy Goldberg, Head of US Rates Strategy at TD Securities, said that Powell was reluctant to express an overly dovish stance, which affected the direction of interest rates, especially when Powell mentioned that this rate cut was an "insurance" measure.