The market is no longer fully betting that the Federal Reserve will cut interest rates this year.

PANews reported on March 12 that bond traders are no longer fully pricing in expectations of a Federal Reserve rate cut in 2026. Interest rate swaps linked to the Fed's policy meeting date showed that traders on Thursday anticipated only a 24-basis-point rate cut this year, less than the 25-basis-point cut typically seen in a full cut, compared to expectations of around 30 basis points on Wednesday evening. This shift comes amid a continued decline in U.S. Treasuries, with the yield on the two-year Treasury note, most sensitive to Fed policy changes, rising 4 basis points to near 3.70%. U.S. Treasuries faced pressure this week as investors worried that the Middle East conflict would continue to push up energy prices, leading to renewed inflation.