"Market Uncertainty Looms as Treasury Yields Hold Steady Amid Fed and Economic Data"

Uncertainty has returned to the US Treasury market as investors reassess their bets on when the Federal Reserve will cut interest rates, following strong economic data and a cautious message from the Fed. Yields on the benchmark 10-year Treasury have surged, leading to a splintering of potential outcomes and a decrease in expectations for a March rate cut. The possibility of a first rate cut in May has increased, and investors are now pricing in a total of 122 basis points in cuts in 2024. The rise in yields hasn't significantly impacted stocks, and many still believe that the direction of travel for rates is lower as long as inflation remains on a cooling trend.