Traders expect to cut interest rates by less than 30 basis points in September, and the Federal Reserve may cut interest rates by a total of 92 basis points this year

Treasury yields surged as traders scaled back expectations for a big Fed rate cut this year after the latest data showed the US economy was resilient. Traders scaled back bets that the Fed would cut rates sharply in September, expecting a cut of less than 30 basis points next month. They now expect the Fed to cut rates by a total of 92 basis points for the rest of 2024, down from more than 100 basis points before the data.