Capital Economics: US Treasuries may face challenges for the remainder of this year.

[Capital Economics: U.S. Treasuries may face challenges for the remainder of this year] Capital Economics analyst Thomas Mathews stated in a report that despite the strong recent performance of U.S. Treasuries, they are expected to struggle for the remainder of the year. "The rally in U.S. Treasuries that has lasted for weeks seems to have paused," Mathews said. Comments made by Federal Reserve Chairman Powell at a meeting in Sintra, Portugal, appear to be a factor contributing to the pause in the rally. Powell stated that there would be no rush to cut interest rates as long as the economy remains stable. He said, "For us, we doubt that the Federal Reserve will have the evidence needed to cut rates before next year, and we also doubt that it will yield to political pressure." Capital Economics expects that the Federal Reserve will not cut rates before next year.