Rate Cut Worries Tank Bond Market

The bond market has taken very heavy losses as investors fear about rate cuts.

As the U.S. economy remains strong, with consistently lower unemployment rates and a growing GDP, the Fed has advanced further speculation of cutting interest rates, making bond cheaper.

With bonds now destined to lose value, bond traders have took to the markets to proclaim their grievances. Over the past month since the first Fed rate cut, the pre-cut boom of the bond market ceased and, in fact, began to plummet. This is good news for those holding debt, however, as they are more easily able to afford paying back their loans.