The U.S. yield curve is flattening, suggesting that the Federal Reserve (FED) is unlikely to cut interest rates in June.

On May 8, Jin10 reported that, according to foreign media analysis, the Federal Reserve (FED) remained steady as expected, and U.S. Treasury yields fell. The benchmark 10-year U.S. Treasury yield further declined to 4.267%, falling 5.1 basis points during the day. The two-year U.S. Treasury yield, which reflects interest rate expectations, fell 2.5 basis points to 3.768%. The yield spread between the two-year and 10-year U.S. Treasury yields narrowed to 49.9 basis points, compared to 51 basis points later on Tuesday. The yield curve flattened, indicating that the Federal Reserve (FED) is unlikely to ease policy at the next meeting in June. Typically, during the Federal Reserve (FED)'s easing cycles, the yield curve steepens.