The iShares 20+ Year Treasury Bond ETF (TLT) surged 0.8% on Monday, climbing above $101 per share to its highest level since July 2023 as investors anticipate an imminent interest rate cut by the Federal Reserve. On the same day, Yields on the 30-year U.S. Treasury bond dropped to 3.93%, marking their lowest levels since late July 2023, indicating higher demand for bonds.
Consumers? wallets should get some relief if the Federal Reserve lowers rates this week, but it won?t be a huge help, according to Benjamin Ayers, senior economist with Nationwide Insurance.
Despite the underperformance to USTs, munis saw positive momentum during the first two weeks of September with the asset class returning 0.68% so far this month and 1.99% year-to-date.
In recent years, Federal Reserve Chair Jerome Powell mentioned inflation extensively in various speeches, testimonies, and reports. This Wednesday will be no different. The rate influences borrowing costs for mortgages, credit cards, and car loans. With inflation having fallen close to pre-pandemic levels, the Fed is at a turning point.
In recent years, Federal Reserve Chair Jerome Powell mentioned inflation extensively in various speeches, testimonies, and reports. This Wednesday will be no different. The rate influences borrowing costs for mortgages, credit cards, and car loans. With inflation having fallen close to pre-pandemic levels, the Fed is at a turning point.
A potential crypto market reversal ahead of the upcoming Federal Open Market Committee meeting on Wednesday may be on the cards, according to a crypto trader. What Happened: Pseudonymous trader Astronomer Zero puts a 91% chance on the market reversing after the meeting.
NewtekOne, Inc. (NEWT) announced today that it has closed a registered public offering of $75.0 million aggregate principal amount of its 8.625% Fixed Rate Senior Notes due 2029. The Notes are expected to be listed on the Nasdaq Global Market? under the trading symbol ?NEWTH,? within thirty days.
Often considered an afterthought compared to the juggernauts of economic indicators ? such as the Consumer Price Index inflation and job market report ? retail sales data rarely moves the needle for Federal Reserve policymakers.
More than 40 financial firms will join central bank group the Bank for International Settlements to explore how tokenization can enhance wholesale cross-border payments in Project Agor?, the BIS said on Monday.
Given the Fed's reluctance to "surprise markets or take actions that could be perceived as overtly political," Interactive Brokers Chief Strategist Steve Sosnick said, "we find it hard to believe that anything other than 25 bp is the likely outcome for the upcoming FOMC meeting."
The unprecedented 2020-2024 interest rate cycle marked the fastest pivot from an active easing to tightening by policymakers in advanced economies since the 1970s. Even if the Federal Reserve pivots to cutting interest rates, rates may not fall to levels typical of the last 15 years during this rate cycle.
US-listed shares of Chinese stocks, including Alibaba Group Holding Limited (BABA) and PDD Holdings, Inc. (PDD), are trading slightly lower Monday following weak economic data released over the weekend. The Details: Data released on Saturday showed factory output, consumption and investment in China all slowed more than anticipated, while the jobless rate unexpectedly rose to a six-month high.
The U.S. economy is not in need of a substantial rate cut to maintain its growth, according to Carl Weinberg, Chief Economist at High Frequency Economics. What Happened: Weinberg discussed the state of the U.S. economy and the Federal Reserve?s monetary policy decisions, in a recent interview with CNBC.
By RoboForex Analytical Department EUR/USD is showing signs of strengthening, currently trading around 1.1088 on Monday. The shift in market sentiment has been substantial, with the probability of a 50 basis point cut now at 45%, up from just 20% a week earlier. Conversely, the European Central Bank, which reduced its rate last week, continues to assert its independence.
The Federal Reserve is set to cut the federal funds rate for the first time in over four years at the upcoming Federal Open Market Committee meeting on Wednesday. The key options on the table are either a 25-basis-point cut or a more aggressive 50-basis-point cut. Currently, market participants are leaning slightly toward the latter.
The price of gold is determined by market supply and demand - just like the price of any commodity. Image: Picture 1 Just over 48% of mined gold is used to make jewellery. Only 6% of mined gold is used in industry. It is worth considering that gold is a rare metal with limited reserves. Gold is not just an exchange-traded commodity, but also an important economic indicator.
As the Federal Reserve prepares to cut interest rates, Americans will need to adjust their bond and income portfolios to capitalize on current yields and protect against future market shifts. Recent economic data on employment and inflation has reinforced expectations of imminent rate cuts.
While supply falls next week as investors await their first Fed rate cut in four years, it should pick up after the FOMC, Barclays PLC said, adding the 30-day visible pipeline "is at relatively manageable levels at the moment." Bond Buyer 30-day visible supply is at $10.09 billion.
Interest rate cuts can significantly influence cash movement into money markets, but the popular belief that this maneuver automatically drives stock market gains is often overstated. Earlier this month, JPMorgan strategists stated in a research note that the Federal Reserve?s anticipated rate cuts might not be sufficient to drive a new surge in the stock market.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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