Traders anticipate the Fed's rate decision, causing a decrease in the 10-year Treasury yield.
On Tuesday, the 10-year Treasury yield decreased as the Federal Reserve began its first policy meeting of 2024 and traders analyzed new economic information.
The yield on the was down by 3 basis points at 4.060%, while the yield on the was higher by 3.9 basis points at 4.36%.
An inverted relationship exists between yields and prices, with one basis point equal to 0.01%.
The Federal Reserve's January meeting commenced on Tuesday and will end with a new interest rate decision and a forecast on the future of monetary policy on Wednesday.
In the December meeting of the Fed, policymakers predicted three rate cuts for 2024. However, the minutes from the meeting revealed that the future of monetary policy was uncertain.
According to CME Group's FedWatch tool, traders were last pricing in a 50-50 chance of rates being held steady or being cut at the next Fed meeting in March.
The Conference Board's consumer confidence index increased to 114.8 in January, its highest level since December 2021. However, this was slightly below the Dow Jones estimate of 115. Meanwhile, job openings in the U.S. stood at 9.02 million in December, according to the U.S. Bureau of Labor Statistics, while economists polled by Dow Jones forecast 8.8 million.
markets
You might also like
- Japan's stocks are declining following Shigeru Ishiba's victory.
- The last trading session of September in Europe is expected to begin with a decline.
- Major cities in China ease homebuying restrictions, prompting a rally in property stocks.
- Japan's Nikkei drops by 3%, while Australia reaches a new record high, as investors anticipate the release of China's data.
- Blockchain technology could revolutionize the ETF industry by enabling the use of treasurys as assets.