Bond investors are looking to the Federal Reserve for guidance on the timing of rate cuts, following a rally in Treasuries last week that was affected by escalating geopolitical tensions leading to a surge in oil prices.
Investors affected by President Donald Trump's trade and fiscal policies will observe the impact on the Fed's interest-rate policy during the June 17-18 meeting where interest-rate projections will be scrutinized to gauge policymakers' response to uncertainty.
Markets are currently pricing in a high probability that the Fed will lower rates in September, with expectations of less than two quarter-point cuts by year-end.
Key upcoming events to monitor include economic data releases and Fed actions, such as the FOMC rate decision on June 18.