Treasury Yields Plunge Most ‘Since Lehman’, Gold Soars Amid Dovish-Dive In Fed Expectations

The 2Y Treasury yield is down 45bps from yesterday’s highs…

That is the biggest 2-day drop in the 2Y yield since Lehman (Sept 2008)…

Source: Bloomberg

The market’s expectation for Fed moves has shifted dramatically more dovish with the terminal rate tumbling by over 40bps and a full 25bps rate-cut now priced-in by year-end…

And gold is seeing huge safe haven inflows…

Will The Fed break its blackout window to soothe market fears?