The short end of US Treasury bonds fell further, and market expectations of interest rate cuts by the Federal Reserve decreased.

As traders continue to reduce their bets on the Fed cutting interest rates, yields on short-end U.S. Treasury bonds further decline, causing the yield curve to flatten sharply. At the same time, U.S. stocks are strengthening, with Donald Trump announcing a trade agreement with the UK. Overnight index swaps linked to the Fed meeting continue to be supported by buying, reflecting a decrease in market expectations for the size of rate cuts this year. Currently, the market is only expecting a 4 basis point rate cut at the June policy meeting, with a total of 68 basis points of rate cuts expected for the year.