Trump policy changes, not Fed, in focus for rates market: BofA

The U.S. bond market since December has been dialing back expectations for Federal Reserve interest rate cuts, as the above chart shows.

Similarly, rates investors “do not expect a large shift in policy guidance” at next week’s Fed policy meeting, BofA Global rates strategists wrote, in a Wednesday client note.

They instead have been focused on “Trump policy changes & the economic impact vs the Fed right now.”