Ongoing Upward Movement in US Treasury Bonds: A Third Month in the Plus?

The development in the global bond market at the beginning of this week is marked by a significant rise in yields on U.S. Treasury bonds. Long-term bonds, in particular, are leading the upward movement, with yields on 30-year securities declining by around 5 basis points. Analysts are observing this rally with interest, as the upward trend has now extended over three months, representing the longest continuous series of price increases in three years. The markets are reacting to the expectation that the U.S. Federal Reserve may signal the start of a monetary easing cycle during its meeting on July 31. With this development, investors are increasingly focusing on the Federal Reserve’s monetary policy decisions and their implications for the future interest rate landscape. Confidence in an imminent rate-cutting cycle is significantly contributing to the current dynamics in the bond markets.