NEW YORK, July 16 (Reuters) - U.S. Treasury two-year

yields dropped on Wednesday, after a report suggested that

President Donald Trump is likely to fire Federal Reserve Jerome

Powell soon.

U.S. two-year yields, which track interest rate

expectations, dropped 6.9 basis points (bps) to 3.889%

.

Rate cut bets starting in September increased to 66% after

the report, from 54% just before.