As soon as Federal Reserve Chairman Powell's statement about recent data showing a lack of further progress in inflation came out, swaps linked to the central bank's meeting period indicated that interest rate cuts continued to fall. The sell-off in the short-term market pushed 2-year Treasury yields above 5% to reach their highest level since November last year. The steep trend of the 2s10s spread continued to slow down earlier. The Federal Reserve's interest rate cut expectations for the year have shrunk to 38 basis points from 43 basis points at the close of the day on Monday. Interest rate cuts in July are expected to be around 10 basis points, compared to 13 basis points previously.