Preview of the Fed's decision: A smaller rate cut will lead to a sell-off of US bonds

Glen Capelo, managing director of fixed income at Mischler Financial Group, said a 25 basis point rate cut by the Fed is likely to lead to a sell-off in U.S. Treasuries, though much will depend on Powell's press conference. Michael Rosen, managing partner and chief investment officer at Angeles Investments, believes that the current bond market is pricing the Fed's rate cuts too aggressively. The market expects the Fed to cut rates by 250 basis points next year, a rate that is only possible in a recession. Therefore, he believes that the decline in short-term U.S. Treasury yields will be lower than market expectations, and long-term yields may even rise from now on. (Jinshi)