US 4-Week Bill Yield Rises to 3.63% as Markets Trim 2026 Fed Cut Bets

2 articles · Updated · vtmarkets.com · May 28

A 4-week Treasury bill auction cleared at 3.63%, up 2 basis points from 3.61%, keeping ultra-short US funding costs in the mid-3% range.
April inflation at 3.1% and a 210,000 gain in nonfarm payrolls with 3.8% unemployment have led investors to scale back expectations for rapid Federal Reserve easing.
The report says markets still price nearly two full rate cuts by end-2026, but sees that outlook as too optimistic and flags a possible Fed pause at the June meeting.
That higher-for-longer view could lift volatility from the VIX's recent 17 level, pressure rate-sensitive equities such as the Nasdaq 100, and support further US dollar strength.

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