Speculation that Trump would pour stimulus onto the nation’s expansion – and keep upward pressure on Treasury yields – is being rapidly swept aside less than two months into his presidency. Instead, traders have been piling into short-dated Treasuries, pulling the two-year yield down sharply since mid-February, on expectations the Federal Reserve will resume cutting interest rates as soon as May to keep the economy from deteriorating. Speculation that Trump would pour stimulus onto the nation’s expansion – and keep upward pressure on Treasury yields – is being rapidly swept aside less than two months into his presidency. Instead, traders have been piling into short-dated Treasuries, pulling the two-year yield down sharply since mid-February, on expectations the Federal Reserve will resume cutting interest rates as soon as May to keep the economy from deteriorating. Economic Times
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