According to Odaily, bond investors expect the Federal Reserve to keep interest rates unchanged this week while signaling potential rate cuts in the near future. This anticipation has led them to bet that the U.S. Treasury yield curve will become less inverted and eventually return to normal. The closely watched two-year/ten-year U.S. Treasury yield curve has been inverted for two consecutive years, marking the longest inversion in history, with the current yield spread at negative 22 basis points.

The market widely expects the Federal Reserve to maintain its overnight benchmark interest rate in the 5.25%-5.50% range for the eighth consecutive time on Thursday. Investors are looking forward to Federal Reserve Chairman Jerome Powell's post-meeting press conference, where they hope he will deliver a dovish signal by hinting at the possibility of rate cuts as early as September. If this occurs, it would mark the first rate cut in four years.