(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