Expectations for interest rate cuts are rising, and the spread between long-term and short-term US Treasury yields is widening.

Recently, influenced by weakening economic data and increasing expectations of a rate cut by the Federal Reserve, US bond yields have been fluctuating downward. Among them, short-term US bond yields, which are more sensitive to changes in monetary policy, have seen a significant decrease, causing the yield curve to steepen due to widening term spreads. Analysts believe that the market's expectations for a rate cut by the Federal Reserve in September are already priced in, but there is still a lot of uncertainty regarding inflation outlook. It is expected that fluctuations in rate cut expectations due to changes in economic data will continue to be an important factor impacting the movement of US bond yields.