The U.S. yield curve is flattening, suggesting that the Federal Reserve is unlikely to cut interest rates in June.

According to foreign media analysis reports, after the Federal Reserve kept interest rates unchanged as scheduled, US Treasury yields fell. The benchmark 10-year US bond yield further declined to 4.267%, dropping 5.1 basis points intraday. The 2-year US bond yield, which reflects interest rate expectations, fell by 2.5 basis points to 3.768%. The yield spread between 2-year and 10-year US bonds narrowed to 49.9 basis points, compared to 51 basis points later on Tuesday. The yield curve flattened, indicating that the Federal Reserve is unlikely to ease policy at its next meeting in June. Typically, during a period of monetary easing by the Federal Reserve, the yield curve steepens.