US Treasury Yields Decline as Traders Assess Fed's Lowered GDP Forecast

According to a report by Jinse Finance, in the June dot plot, Federal Reserve officials lowered their expectations for the number of rate cuts by the end of 2027. Nevertheless, following the release of the dot plot, the yield on the 2-year U.S. Treasury note, which tracks Fed policy expectations, still declined slightly. Traders may be reacting to the Fed officials’ forecasts of slower economic growth compared to the estimates in March. The Fed now projects economic growth rates of 1.4% for this year and 1.6% for next year, down from the March forecasts of 1.7% and 1.8%, respectively.