Risk-averse buying fades, dragging down US Treasury yields, market focus shifts to the sale of billions of dollars in bonds

As global demand for safe-haven assets declines, US Treasury prices are falling, with market focus shifting to a $58 billion auction. This marks a rapid change in market sentiment. Previously, signs of slowing US economic growth, coupled with the selling of risk assets, led to speculation that the Fed may need to significantly cut interest rates to help the world's largest economy. On Monday, the US 2-year Treasury yield briefly dropped by 20 basis points. Furthermore, with short-term yields declining, the US 2-year Treasury yield fell below the 10-year Treasury yield for the first time since July 2022. This is an important milestone for the US Treasury market