Fund manager: If the Fed cuts interest rates too soon, the yield on 10-year US Treasury bonds may rise.

Bill Zox of Brandywine Global stated in a report that if the Federal Reserve lowers interest rates too early, the yield on 10-year US Treasury bonds may rise. The fund manager explained that usually, yields decrease when interest rates are decreased, but lowering rates prematurely may have the opposite effect. This could lead to concerns about the Federal Reserve losing control of inflation. It could also raise worries that the Federal Reserve is succumbing to political pressure from President Trump after his recent criticism of their decision not to lower rates. Zox pointed out that the real focus should be on the game between the Trump administration and the financial markets. According to data from Tradeweb, the yield on 10-year US Treasury bonds increased by 3 basis points to 4.308%.