By Sarupya Ganguly

BENGALURU (Reuters) -The U.S. Treasury yield curve will steepen over coming months as increasing Federal Reserve rate cut bets drive short-term yields lower even as longer-dated ones remain high, a Reuters survey of bond strategists showed.

Treasury yields have broadly fallen recently with the benchmark 10-year yield hitting a five-month low after jobs data showed a weakening labor market, exacerbated by the Bureau of Labor Statistics saying the U.S. economy created over 900,000 fewer jobs than previously estimated in the 12 months through March.

That has all but cemented expectations of a 25 basis point U.S. rate reduction this month and also ramped up bets on deeper cuts to come, despite inflation being above the Fed’s 2.0% target.

Interest rate futures are current

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