According to BlockBeats, on September 4, Pepperstone Senior Research Strategist Michael Brown stated in a report that U.S. Treasury bonds might continue their upward trend from Tuesday. The gains on Tuesday were led by long-term bonds, although they might be somewhat restrained by the issuance of a large number of new corporate bonds.
Brown noted that while the demand for safe-haven assets might sustain these gains, if this demand persists over the next few trading days, the market could start to reprice the Federal Reserve's outlook in a more hawkish direction. This could lead to another sell-off in short-term Treasury bonds and a new round of curve steepening.
He added that the current expectations in the money market for the Federal Reserve to cut interest rates by 100 basis points by the end of the year remain overly optimistic.