Federal Reserve’s Cautionary Tone Tempers Treasury Market’s Momentum

Federal Reserve’s Cautionary Tone Tempers Treasury Market’s Momentum


(Bloomberg) — US Treasuries ​initially rose on Wednesday after the Federal⁢ Reserve decided to maintain interest rates but indicated that ‍it is not in a hurry ⁣to ‌adjust its⁣ policy.

The Fed’s policy statement eroded‍ the earlier rally⁢ as‍ yields declined due to ‌a slowdown in the labor market, tech ​stock struggles, and an unexpected quarterly loss at a New York bank, raising concerns about the financial​ health of regional lenders.

Despite the⁢ decline, the two-year Treasury rate was still down around 6 basis points⁤ at 4.27% ⁢after the Fed’s announcement at 2 p.m. ‍New ⁤York time, having fallen as much as ‌15 basis points earlier. The 10-year‍ yield, which serves as ‍a benchmark ​for mortgages and corporate loans, also decreased by‌ a similar amount to 3.98%.

The ‌Fed’s assurance that it will not cut rates until it is more confident about inflation moving sustainably toward its target has impacted financial market​ confidence…

2024-01-31 14:14:04
Read more on finance.yahoo.com

Exit mobile version