Bond investors anticipate a decrease in Federal Reserve interest rates in the first half of next year due to slowing US economic growth and inflation.

The release of the US personal consumption expenditures (PCE) price index may bring this policy move closer.

The data suggests a 25- to 50 basis-point cut before the end of summer 2024 as the economy slows down.

Hawkish Fed Governor Christopher Waller has suggested a rate cut in the coming months.