Institution: Expectations of rate cuts are excessive, and US bonds have entered the overshoot range

Mark Dowding, chief investment officer of BlueBay, an asset management company under Royal Bank of Canada, said that the recent rise in U.S. Treasuries looks a bit excessive, and the market may have digested the impact of the Fed's rate cuts. Given that interest rates will be cut by 80 basis points in the remainder of 2024, we believe this is an overshoot range, and fair pricing is one to two rate cuts. Given this view, we tend to reverse the recent trend of U.S. Treasury yields. (Jinshi)