Treasury Yields Plunge as crumbling markets signal a drop in interest rates today. This shift sent Treasury yields plunging and offered hope to crypto amid the chaos. Treasury Secretary Scott Bessent reaffirmed Trump’s commitment on Tuesday, saying the administration targets lower interest rates .
The Nasdaq dropped 2.6% yesterday, hit hard by tariff threats from Trump. He imposed a 25% levy on Mexico and Canada goods and added extra taxes on Chinese imports. Treasury Yields as markets react now.
Bessent committed to easing borrowing costs. He said, “Interest rates are set to drop.” The 10-year Treasury yield recorded 4.13%, down from 4.80% since Trump’s inauguration.
Fed Rate Cut Odds Rise
Markets ruled out rate cuts for 2025 weeks ago. The Fed now expects three trims this year. Today, CME FedWatch priced in a 47% chance of a cut by May. Odds of two cuts by June rose to 36%.Treasury Yields Plunge as expectations shift.
A memecoin bubble burst depressed crypto prices. A risk-off sentiment in finance added pressure. Lower interest rates today could lift digital assets, analysts say. The Fed faces a delicate balance with inflation at 3%.
Inflation has risen for four months straight. The Fed has not met its 2% target since February 2021. Officials weigh recession risks against higher prices. Treasury Yields Plunge, but quantitative easing remains distant.
Source: Coin desk
