The Fed may be ready to cut in September, but the bond market? Not exactly throwing a party. Macro strategist Jim Bianco, president of Bianco Research, warned that the bond market—particularly long-dated Treasuries—is sending a clear message: It doesn’t want these rate cuts.
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In an interview with Bloomberg TV on Tuesday, Bianco indicated that despite Fed Chair Jerome Powell‘s dovish pivot at Jackson Hole, where he strongly signaled a shift toward prioritizing labor market stability over inflation, the long end of the yield curve isn’t cooperating.
The 30-year Treasury yield has barely budged since early August, even after Powell cracked the door wide open to easing.
“For all the talk that the Fed’s going to cut in September, the bond market’s had a month to think about it—and it’s up one basis point,” Bianco said.
In other words, the bond market isn’t just shrugging off a rate cut—it may be quietly resisting it.
Chart: 30-Year Treasury Yields Remain Above 4.90%, Pushing Back A Fed Rate Cut
