US Treasury yields dropped as traders assessed The Federal Reserve (FED) lowering GDP expectations.

Jin10 data reported on June 19, that in the dot plot for June, The Federal Reserve (FED) officials lowered their expectations for the number of interest rate cuts by the end of 2027. Nevertheless, with the release of the dot plot, the 2-year U.S. Treasury yield, which follows the FED’s policy expectations, still saw a slight drop. Traders may be reacting to the FED officials’ forecast of a slowdown in economic growth (compared to the March estimate). The FED currently projects economic growth rates of 1.4% and 1.6% for this year and next year, respectively, whereas the March forecast was 1.7% and 1.8%.