US bond yields rebounded at the start of the week’s sessions after witnessing sharp declines in the past days, as the 10-year yield fell to its lowest level in 15 months in Friday’s session, while the two-year yield fell to its lowest level since March 2023.
The bond market indicates that the Federal Reserve is heading towards cutting interest rates at a significant pace over the next 18 months, despite many economists expecting that the United States will avoid a recession.
Another remarkable thing happened in the bond market last week. It is the dis-inversion of US bond yields, as the ten-year bond yield returned to outperform the two-year yield, after remaining in a state of inversion or reversal for about 700 days, which is the longest inversion period since 1929
