U.S. Bond Market Turmoil: 2-Year Yields Surge Amid Fed Rate Cuts 🚨

U.S. government bonds have experienced a significant sell-off as the Federal Reserve initiated interest rate cuts for the first time since 2020. Two-year yields surged thirty-four basis points since the Fed's reduction, mirroring trends from 1995 when Alan Greenspan navigated a successful soft landing. Current market conditions suggest that rising yields reflect decreased recession risks and robust economic data, leading to expectations of a slower pace of rate cuts.