June lows give way
The bond market is clearly pricing in a larger chance of rate cuts. The yield on the two-year note is down 10 basis points to 1.76%.
The good news for the economy (if you want to stretch) is that the yield curve is steepening with 2s10s up 7 bps and 2s30s up 8 bps. The message here is that the Fed is getting the message that it needs to cut rates.
