Institution: Markets may overreact to Fed signals

Pepperstone analyst Michael Brown said the market appeared to be overreacting to the message from Fed Chairman Powell. The senior research strategist said in a report that the market currently expects the Fed to cut interest rates by only 31 basis points in 2025. The Treasury market reacted to the Fed's signal of slowing the pace of rate cuts, and then sold off. According to Tradeweb data, the yield on the two-year Treasury bond fell about 1.5 basis points to 4.342%, while the yield on the 10-year Treasury bond rose about 2 basis points to 4.522%. (Jinshi)