Treasuries Slip as Bond Traders' Most-Hyped Week in Years Ends.

Treasuries are ending the week with mostly higher yield levels following the Federal Reserve's first interest-rate cut in four years. The rate cut was larger than expected, but note and bond yields had already reached their lowest levels of the year prior to the cut. The outlook for future rate cuts remains uncertain, and the market has little room for gains. Longer-dated yields have risen this week, with the 10-year yield reaching around 3.72%. Economists have varying forecasts for future rate cuts, with some predicting quarter-point moves. Fed Governor Michelle Bowman dissented from the rate cut decision, stating that it could be seen as a premature declaration of victory on inflation. The market expects quarter-point cuts in the remaining Fed meetings of the year. Treasury yields briefly declined after the rate decision but resumed rising after Fed Chair Jerome Powell cautioned against expecting a pattern of half-point moves. The market-implied terminal rate remains around 3%. Bond market volatility has fallen to the lowest level in two months, reflecting expectations for a measured policy approach. Investors are now focusing on upcoming economic data and remarks from policymakers. [Extracted from the article]