The U.S. debt market is focused on the Federal Reserve meeting and U.S. debt auctions, with traders betting on rate cuts by the end of the year.

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BlockBeats News, April 27, as tensions in the Middle East push oil prices higher, U.S. Treasury market traders are closely watching this week’s Federal Reserve meeting to assess officials’ views on inflation prospects. The market generally expects the Fed to keep interest rates unchanged on Wednesday, but traders lean toward believing that rate cuts will still occur before the end of the year. Friday’s swap market data shows that the probability of rate cuts before year-end has risen to around 40%.

This development could pave the way for Kevin Warsh, a Trump nominee, to take over the Federal Reserve in the future and implement more accommodative policies. Against this backdrop, traders will listen carefully to Chair Powell’s remarks at the post-meeting press conference for the latest information on his plans after his term ends in May next year. Meanwhile, a series of U.S. Treasury auctions, including 2-year and 5-year notes, will take place this week to test market demand under current yield levels. (Jin10)

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