US Markets
Monday, November 27th, 2023 3:28 pm EDT
Key Points
- Steady Treasury Yields: U.S. Treasury yields remained stable as markets reopened, with the 10-year Treasury yield slightly down by more than 1 basis point at 4.468%, and the 2-year Treasury yield dropping by 1 basis point to 4.946%.
- Upcoming Economic Data: Investors awaited key economic data that could impact the Federal Reserve’s monetary policy. The October personal consumption expenditures price index, a crucial inflation gauge for the central bank, is expected on Thursday. Monday’s agenda included the release of new home sales data for October and the Dallas Fed manufacturing index.
- Economic Signals and Fed Outlook: Investors closely monitored the economic data for indications of the economy’s state, particularly whether it is cooling as interest rates remain elevated. While the market broadly anticipates the end of Fed rate hikes, there is uncertainty about the timing of potential rate cuts. Fed policymakers, including Chairman Jerome Powell, are scheduled to make remarks this week, and investors are looking for clarity on the duration of elevated interest rates. Minutes from the last Fed meeting suggested that rate cuts had not been discussed.
U.S. Treasury yields remained stable as markets resumed activity after a shortened trading day on Friday, with investors awaiting economic data that could influence the Federal Reserve’s monetary policy. The 10-year Treasury yield was slightly over 1 basis point lower at 4.468%, while the 2-year Treasury yield dropped by 1 basis point to 4.946%. The October personal consumption expenditures price index, set to be released on Thursday, is a key indicator for the Fed’s preferred inflation measure, offering insights into whether inflationary pressures are abating. Investors are closely watching economic data, including new home sales for October and the Dallas Fed manufacturing index on Monday, to assess the economic landscape amid elevated interest rates. The market is anticipating the end of Fed rate hikes but remains uncertain about the timing of potential rate cuts. This week, several Fed officials, including Chairman Jerome Powell, are scheduled to provide remarks, with investors seeking clarity on the duration of elevated interest rates. The upcoming Fed policy meeting is expected to offer insights into the outlook for interest rates, as revealed by minutes from the last meeting, which indicated that rate cuts were not under discussion.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/27/us-treasurys-investors-weigh-state-of-economy-.html
