🔸MARKET PRICING OF FED RATE CUTS BY JUNE ARE OVERDONE, BLACKROCK SAYS

Ten-year U.S. Treasury yields touched 15-month lows, settling near 3.66% with market pricing in 200 basis points of Fed cuts by next June, BlackRock says. "We think this is overdone and could set up more sharp pricing shifts as markets see-saw between starkly different potential outcomes," it says. The Fed is set to start cutting interest rates on Wednesday, with a 67% probability priced in for a 50-basis-point reduction, according to LSEG Refinitiv, even as many analysts say the state of the U.S. economy doesn't justify such a big move.