[2-year Treasury yields fell 50BP in a few days, and the market is betting heavily that the Fed will start rescue mode] Golden Finance reported that bond traders are betting that the US economy is on the verge of deterioration and the Federal Reserve will need to start easing monetary policy aggressively to avoid a recession. Previous concerns about high inflation have basically disappeared, quickly giving way to new concerns that the economy will stall unless the central bank starts to cut interest rates from more than 20-year highs. This is driving the bond market to one of the best gains since concerns about a banking crisis broke out in March 2023. The rise was so strong that the policy-sensitive 2-year Treasury yield fell 50 basis points last week to less than 3.9%. Since the global financial crisis and the bursting of the Internet bubble, this yield has not been so much lower than the Federal Reserve's benchmark interest rate (currently around 5.3%).