The Federal Reserve is highly likely to cut interest rates on September 17, but the market is strange: the 30-year U.S. Treasury yield has surged to 5%.
In theory, a rate cut should lower interest rates and then bond prices should rise, but the current situation is the opposite.
The reason is simple: Country M issued 200 billion dollars worth of bonds in 5 weeks, and the market is unwilling to take them on, forcing interest rates to rise. In other words, lowering interest rates won't save the bond market.
I think:
If inflation remains around 3% and stays at this level for the next ten year
In theory, a rate cut should lower interest rates and then bond prices should rise, but the current situation is the opposite.
The reason is simple: Country M issued 200 billion dollars worth of bonds in 5 weeks, and the market is unwilling to take them on, forcing interest rates to rise. In other words, lowering interest rates won't save the bond market.
I think:
If inflation remains around 3% and stays at this level for the next ten year
BTC2.15%