The yield on two-year US Treasury bonds extended an overnight decline, falling to 4.11 per cent in early Asian trading, its lowest level since May 2023, as markets increased bets on Fed rate cuts amid fears of a US recession. As of press time, interest rate futures showed that the market priced the Fed to cut interest rates by 87 BP this year, 13 BP away from a bet of four rate cuts this year. With three more meeting windows to cut interest rates this year, the probability of the Fed cutting interest rates by 50 BP in September rose to 33%.