The Fed's interest rate cut narrative has changed! The market has reduced bets on a rate cut in December, and the "global asset pricing anchor" has once again stabilized above 4%.

Zhitong Finance and Economics App learned that this week, the yield of US Treasury bonds unexpectedly rose, mainly because bond traders significantly reduced their bets on interest rate cuts. After Federal Reserve Chairman Jerome Powell signaled a hawkish stance following another rate cut by the Fed, and the latest economic data showed that the overall macroeconomic resilience in the United States remains strong, traders significantly lowered their expectations for further rate cuts in December, which were previously almost 100% priced in. Expectations for rate cuts in 2026 have also cooled.