{
}
The U.S. 10-year Treasury yield rose to 4.227% on Wednesday, continuing its upward trend and exerting pressure on stock markets, with futures declining after the S&P 500 experienced back-to-back losses. Concerns over robust economic data and deficit issues have contributed to this rise, despite a recent half-point rate cut by the Federal Reserve. Investors are closely monitoring upcoming comments from Fed officials and the release of the Beige Book, which reviews economic conditions across the country.
Demand for the Federal Reserve's overnight reverse repurchase agreement facility has fallen to $238 billion, the lowest level since May 2021, down from $261 billion. This decline follows regulatory changes requiring US money-market funds to maintain higher cash reserves, raising questions about the central bank's balance-sheet runoff.
The cost of options to hedge against potential losses in Treasuries has surged to its highest level of 2024, as traders prepare for significant upcoming events that could exacerbate market declines. With key payroll data due next week, followed by the US election on November 5 and the Federal Reserve's policy announcement shortly after, concerns are mounting. Benchmark 10-year rates have already reached their highest point since July, with expectations of even greater yield increases ahead.
US Treasuries have experienced a significant sell-off reminiscent of 1995, coinciding with the Federal Reserve's first interest rate cut since 2020. Two-year yields surged by 34 basis points following the Fed's decision, contrasting with the typical decline seen in previous rate-cutting cycles. This shift reflects traders' optimism about a potential soft landing for the economy.
European Central Bank President Christine Lagarde suggested that Donald Trump should visit Frankfurt to understand the challenges faced by Federal Reserve Chair Jerome Powell. In an interview with Bloomberg Television, she emphasized that setting interest rates is far from an easy task, countering the presidential contender's claims.
The trajectory of Bitcoin is closely tied to U.S. monetary policy and economic conditions, with potential short-term fluctuations influenced by political candidates' stances on cryptocurrencies. Despite Donald Trump's past criticisms, he now appears more favorable towards Bitcoin than Kamala Harris, whose position is complicated by the SEC's stringent regulations. Overall, the U.S. is unlikely to block promising technologies like Bitcoin, fostering an environment for innovation and competitiveness.
UBS strategists anticipate that further Federal Reserve rate cuts will support US economic growth, despite mixed sentiment in business and consumer surveys. Recent labor market data shows unexpected strength, with wage growth remaining above pre-pandemic levels, while inflation is gradually moderating, expected to decline to 2.1% in September. The Fed may implement 25-basis-point cuts in upcoming meetings, though a potential skip this year is also on the table, without altering the broader policy trajectory.
UBS strategists anticipate that further Federal Reserve rate cuts will support US economic growth, despite mixed sentiment in business and consumer surveys. Recent labor market data shows unexpected strength, with wage growth remaining above pre-pandemic levels, while inflation is gradually moderating, expected to decline to 2.1% in September. The Fed is likely to implement 25-basis-point cuts in its remaining meetings this year, with a potential shift to a neutral policy stance by 2025.
Gold remained steady near its record high, trading around $2,720 an ounce as traders assessed mixed signals from Federal Reserve officials regarding interest rate strategies. Kansas City Fed President Jeffrey Schmid advocated for a slower pace of rate reductions, while San Francisco Fed President Mary Daly emphasized the necessity for further cuts to protect the labor market.
Jim Cramer reassured investors not to panic over rising bond yields, stating that the stock market has thrived even with yields at 5% and 6%. Despite a slight dip in major indexes, he highlighted that corporate buybacks and index fund inflows could counteract selling pressure, creating a temporary stock shortage.
Federal Reserve Bank of Boston N.A.
Companies
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
treasury yields rise putting pressure on stocks amid fed rate concerns
United States Dollar
S&P Global Inc.
Federal Reserve Bank of Boston N.A.
USA
Michelle Bowman
Thomas Barkin
10:17 23.10.2024
declining demand for fed liquidity facility raises questions on balance sheet runoff
22:30 22.10.2024
options prices surge as traders brace for treasury market volatility
22:30 22.10.2024
Treasuries Experience Significant Sell-Off Amid Fed Rate Cuts and Soft Landing Optimism
17:44 22.10.2024
lagarde suggests trump visit frankfurt to understand powell's challenges
European Central Bank Legal Entity of Public Law
Federal Reserve Bank of Boston N.A.
USA
Donald Trump
Jerome Powell
Francine Lacqua
Christine Lagarde
Show more
16:59 22.10.2024
dollar trends and cryptocurrency outlook amid political shifts in the us
Euro
United States Dollar
Federal Reserve Bank of Boston N.A.
Securities and Exchange Commission
USA
Joe Biden
Donald Trump
Kamala Harris
Show more
12:54 22.10.2024
fed rate cuts expected to support us economic growth amid mixed signals
11:52 22.10.2024
fed rate cuts expected to support us economic growth amid mixed signals
11:44 22.10.2024
gold steady near record high as traders assess fed rate outlook
02:07 22.10.2024
investors urged to stay calm amid rising bond yields and market fluctuations
United States Dollar
Dow Jones Industrial Average Fund FUND
NASDAQ-100 Fund FUND
Federal Reserve Bank of Boston N.A.
USA
Jim Cramer
Federal Reserve
Show more
00:36 22.10.2024
Trending
Subcategory
Corporate News
Startups & Entrepreneurship
Industry Trends
Global Trade Developments
Stock Market Updates
Industry Mergers & Acquisitions
Private Equity Deals
Government Economic Policies
Supply Chain Management
Retail and Consumer Goods
Fintech Startups
Venture Capital Investments
Inflation and Monetary Impact
Finance Mergers & Acquisitions
Workplace Trends
Energy Sector Developments
Central Bank Actions
CEO Changes
Emerging Startups
Crypto Policies and Governance
Countries:
Companies:
Apple Inc.
NIO Inc.
Nikkei 225
Google Inc.
Nintendo Co., Ltd.
Grab2Go AS
OLA ELECTRIC MOBILITY LTD
Eurasia Groupe SA
British International Investment plc
XPeng Inc.
Li Auto Inc.
Morgan Stanley
Taiwan Semiconductor Manufacturing Company Limited
VFS Global AG
LARGAN Precision Co.,Ltd
S&P/ASX 200
HANG SENG BANK
Delhivery Limited
Ecom Express Ltd.
Arazul Sequoia Capital FIM C Priv
Currencies:
United States Dollar
Indian Rupee
Euro
Chinese Yuan
Japanese Yen
United Arab Emirates Dirham
New Taiwan Dollar
Indonesian Rupiah
South Korean Won
Saudi Riyal
Offshore Chinese Yuan
Hong Kong Dollar
Malaysian Ringgit
Filipino Peso
West African CFA Franc
Thai Baht
Mexican Peso
Croatian Kuna
Bahraini Dinar
Egyptian Pound
People: