**[Market Bets on a 50% Chance of Three Fed Rate Cuts This Year]** Odaily Planet Daily News – On Friday, inflation data came in lower than expected, causing U.S. Treasury prices to rise, and investors' expectations for three Federal Reserve rate cuts in 2026 increased. The two-year U.S. Treasury yield, which is most sensitive to changes in central bank policy, fell as much as 6 basis points to 3.40%, hitting its lowest level since October last year before narrowing slightly. After the data release, traders priced in a total rate cut of about 63 basis points for the year—implying a roughly 50% chance of a third 25-basis-point rate cut by the end of the year, in addition to the two already priced in. On Thursday, the pricing was at 58 basis points. Regarding January's non-farm payroll data, traders earlier this week stopped fully pricing in a 25-basis-point rate cut by mid-year, pushing their bets to July. Wall Street banks that previously predicted a rate cut in March have also postponed their expectations to later in 2026. (Jin10)