This content was created by MarketWatch, which is operated by Dow Jones & Co. economy to slow, but the FOMC will likely want the slowing to be visible before opening the door to easing," he wrote in a note. "We expect a cut in Q1-2024 because we expect the U.S. We doubt that there will be an unconditional commitment to raising rates but the FOMC will signal readiness to do so if needed," said Steve Englander, head of global G-10 FX research and North America macro strategy at Standard Chartered Bank's New York branch. "The Fed's message will be that higher policy rates remain on the table until the economy visibly slows and inflation is closer to 2%. Treasury's $13 billion of 20-year bonds on Tuesday was solid, according to BMO Capital Markets strategist Ben Jeffery. ![]() Building permits, a sign of future construction, rose 6.9% to a 1.54 million rate. homes fell 11.3% in August - short of Wall Street expectations - as builders scaled back new projects to focus on completions. economic updates on Tuesday, housing starts dropped to the lowest level since June 2020. The chance of a 25-basis-point rate hike to a range of 5.5%-5.75% at the subsequent meeting in November was seen at 29%, down from 41.1% a week ago. ![]() Oil settled above $90 a barrel again on Tuesday and Chevron Chief Executive Mike Wirth told Bloomberg TV on Monday that prices will probably reach $100.Īs of Tuesday, markets were pricing in a 99% probability that the Fed will leave its policy interest rates unchanged at a range of 5.25%-5.5% on Wednesday, according to the CME FedWatch Tool. economic data raised concerns about revived inflationary pressures. Yields have crept up in recent weeks as rising oil prices and stronger-than-expected U.S. Tuesday's level is the highest since Aug. 31, 2007.The yield on the 30-year Treasury BX:TMUBMUSD30Y climbed 3.3 basis points to 4.428% from 4.395% late Monday. The 10-year rate ended the New York session at its highest level since Oct. Eastern time figures from Dow Jones Market Data.The yield on the 10-year Treasury BX:TMUBMUSD10Y rose 4.8 basis points to 4.366% from 4.318% on Monday afternoon. Tuesday's level is the highest since July 25, 2006, based on 3 p.m. The yield on the 2-year Treasury BX:TMUBMUSD02Y jumped 4.7 basis points to 5.109% from 5.062% on Monday. government shutdown.Treasury yields ended at their highest levels since 2006-2007 on Tuesday, as investors factored in a higher-for-longer theme in rates ahead of the Federal Reserve's policy decision on Wednesday. Investors are also focused on the prospects of a U.S. Traders are looking ahead to the Fed’s favored inflation gauge, the core personal consumption expenditure price index for August, which will be published on Friday. Treasury’s $48 billion of 2-year notes on Tuesday was “decent” and produced “middling” statistics, according to BMO Capital Markets strategist Ben Jeffery. Consumer confidence declined to four-month low, while new home sales fell to a 675,000 annual rate in August versus a revised 739,000 in the previous month. economic updates on Tuesday, the S&P Case-Shiller 20-city home price index rose 0.9% in July. ![]() Read: Gundlach says investors can sidestep carnage in stocks and earn 8% returns in bonds. However, buyers also emerged, briefly pushing the 10-year yield down to as low as 4.48% on the day. Chief Executive Jamie Dimon suggested to The Times of India that rates could go as high as 7%, which may have added to some bearish sentiment. Michelle Bowman said it “will likely be appropriate” to raise interest rates further “because inflation is still too high.” The move followed last week’s Federal Reserve policy update and recent hawkish chatter from officials. Lingering concerns that the Federal Reserve will raise interest rates further and keep them elevated for longer briefly pushed the 10-year Treasury yield to almost 4.57% earlier on Tuesday. The 30-year rate ended Tuesday’s session at its highest closing level since Feb. Jumped 3.7 basis points to 4.695% from 4.658% late Monday. Tuesday’s level is the highest for the 10-year yield since Oct. Rose 1.7 basis points to 4.558% from 4.541% Monday afternoon. ![]() Eastern time figures from Dow Jones Market Data. Was unchanged at 5.129%, the second-highest level of this year, based on 3 p.m. Long-term Treasury yields once again saw their highest closing levels since 20 on Tuesday amid the higher-for-longer theme on interest rates in the wake of the Federal Reserve decision last week.
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