[The market expects the Fed to cut its benchmark interest rate by more than 2% in the next 12 months] Golden Finance reported that the U.S. Treasury bond rally continued on Tuesday, with the two-year Treasury yield falling to around 3.85% from more than 5% at the end of April. The rise in the past four months is the longest streak since 2021. The move is due to market expectations that the Federal Reserve will cut its benchmark interest rate by more than two percentage points in the next 12 months, which would be the largest drop outside of the economic downturn since the 1980s. For bond bulls, this poses a risk: if the labor market, which cooled sharply in July, can still show resilience, the Fed will be able to cut interest rates at a more moderate pace. The first major test will be released on Friday, when the U.S. government will release non-farm payrolls data for August. Economists expect the data to show a rebound in job growth and a decline in the unemployment rate.