Market Wrap: US Treasury Bonds Surge as Confidence in Fed Shift Grows

Market Wrap: US Treasury Bonds Surge as Confidence in Fed Shift Grows


(Bloomberg) ⁢– Treasury yields are on the ‍rise, with the 10-year benchmark yield hovering close to its lowest point since March. Traders are optimistic⁣ about the Federal Reserve initiating a ‌cycle of easing in‌ September, ‌leading to⁤ an increase in demand for Treasuries.

One of the most popular articles on Bloomberg discusses the stability of S&P 500 contracts as traders eagerly anticipate⁤ the release of US retail sales‍ data. This ⁤data will provide valuable ⁣insights into whether inflation and economic growth have slowed ⁣down enough to ‌meet the expectations‌ of policymakers ⁢who ⁣are considering lowering ⁢interest rates.

Experts at ‍UniCredit⁤ SpA, led by Marco Valli, the global​ head of research, believe that a weaker US retail sales report could⁤ further boost the ⁢Treasury market.‍ They predict that the Fed will implement three rate cuts⁣ this year, starting in ⁣September, and suggest adopting a strategy that favors buying short-term notes while selling long-term bonds to capitalize on the⁢ steepening yield⁢ curve.

Federal Reserve Chair Jerome Powell recently stated that inflation is moving ‌closer to ⁤the central ‌bank’s target ‌of ⁢2% based ‌on the economic performance in the second ‍quarter.

2024-07-16​ 04:34:55
Originally posted on finance.yahoo.com

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