Investors cautious as Fed may cut rates less

US investors are cautious about fewer interest rate cuts by the Federal Reserve, expecting less than three cuts this year. Markets priced in 0.68 percentage points of cuts by December, below the Fed's 0.75 projection. Odds of a June rate cut are at 63%. The benchmark 10-year Treasury yield rose to 4.4%, impacting stock markets. European markets also revised rate cut expectations. UK manufacturing unexpectedly grew, affecting borrowing costs.