Would the Federal Reserve ever do two inter-meeting rate cuts? Because the central bank is already behind the market as traders gobble up government bonds. The action in bonds has been stunning. The yield on the 10-year Treasury TMUBMUSD10Y, 0.750% — the security that underpins valuation of pretty much every asset — fell 18 basis points to 0.75%. The yield on the 2-year Treasury TMUBMUSD02Y, 0.504% is now a full half-point lower than the federal-funds rate the Fed targets. Yields move in the opposite direction to prices. “In essence, the markets are expecting the Fed to keep lowering interest rates, signal that ... (full story)