Federal Reserve Bank of St. Louis President Alberto Musalem said on Monday he supports more interest rate cuts as the economy moves forward on a healthy path, while noting that it is appropriate for the central bank to be cautious and not overdo easing monetary policy.
Stronger-than-expected U.S. economic data and surging oil prices are reshaping market expectations for the Federal Reserve?s November meeting. Traders, who initially expected an aggressive 50-basis-point rate cut, are now opting on a smaller 25-basis-point move, with odds of a potential pause in the Fed?s easing cycle surging sharply in recent hours.
Canada's main stock index closed lower on Monday, hit by falling utility stocks as investors scaled back expectations of a big rate cut from the U.S. Federal Reserve in November amid rising tensions in the Middle East.
* U.S. two-year yield hits seven-week highs. * U.S. rate futures price in 12% odds of pause in November. * Investors brace for coupon auctions this week. * U.S. inflation back in focus. By Alden Bentley, Gertrude Chavez-Dreyfuss.
* Strong US jobs growth dampens recession worries. * 10-yr yield tops 4% for first time since early August. * Dollar eases after hitting seven-week high versus yen. By Chuck Mikolajczak.
Estimates indicate that Mexico's economy will log a negative output gap by the end of the year, central bank deputy governor Omar Mejia said on Monday. A negative output gap, which occurs when output comes in under its full potential, could influence prices, Mejia added, speaking at a local university.
Muni yields were cut up two to five basis points, depending on the curve, while UST yields rose five to seven basis points, pushing the 10-year UST yields above 4%.
Cleveland returns to market Wednesday in the first of two bond deals this month. That $64.4 million GO deal funds public parks, bridges and road improvements.
* CBOE Volatility index hits one-month high. * Pfizer (PFE) gains on report Starboard Value takes $1-billion stake. * Oil stocks track crude prices higher. * Indexes down: Dow 0.82%, S&P 500 0.59%, Nasdaq 0.56% By Sin?ad Carew and Lisa Pauline Mattackal. Oct 7 - U.S. stock indexes fell on Monday while Treasury yields rose, as traders tamped down bets for Federal Reserve interest-rate easing.
* Strong US jobs growth dampens recession worries. * 10-yr yield tops 4% for first time since early August. * Dollar eases after hitting seven-week high versus yen. By Chuck Mikolajczak. A gauge of global stocks slipped on Monday and U.S. Treasury yields climbed, with the benchmark 10-year note topping 4% as investors readjusted their views for the path of interest rates from the Federal Reserve.
Last Friday's US economic data showed a big beat across the board. Let's take things from the beginning. Perhaps the Fed is forecasting an upturn in unemployment and a further fall in inflation & GDP, and they ? uncharacteristically ? are trying to be proactive rather than reactive. Headline employment numbers might look good on paper, but what happens when we dig deeper into the details?
The benchmark Treasury yield topped 4% for the first time in two months on Monday, and a widely watched section of the yield curve briefly inverted as markets bet against another jumbo U.S. rate cut after Friday's strong U.S. jobs report. The 10-year yield rose 4.3 basis points from late Friday to 4.024%, and hit its highest level since July 31 at 4.0290% in early trade.
Congress has created recovery bonds for specific disasters in the past, and the CDFA wants the tool to become a permanent private activity bond category.
* Strong US jobs growth dampens recession worries. * 10-yr yield tops 4% for first time since early August. * Dollar eases after hitting seven-week high versus yen. By Chuck Mikolajczak. A gauge of global stocks was little changed on Monday and U.S. Treasury yields climbed, with the benchmark 10-year note topping 4% as investors reassessed the path of interest rates from the Federal Reserve.
* US CPI, PPI data due later this week. * Dollar trading at its highest level in seven weeks. * Traders see an 86% chance of a 25-bp Fed rate cut in Nov. * China central bank pauses gold purchases for 5th month in Sept. By Anushree Mukherjee.
TEMPE, Ariz. The report was issued today by Nancy LeMaster, MBA, Chair of the Institute for Supply Management? Hospital Business Survey Committee: "The Hospital PMI??registered 55 percent in September, a 3.6-percentage point decrease from the August reading of 58.6 percent, indicating a 13th consecutive month of growth after a contraction in August 2023.
U.S. money market funds saw massive inflows in the week to Oct. 2 as investors sought safer assets on caution ahead of a key payrolls report amid heightened geopolitical concerns in the Middle East. They acquired U.S. money market funds of a net $41.32 billion during the week following about $113.11 billion worth of net purchases in the previous week, according to LSEG Lipper data.
Wall Street's main indexes fell at the open on Monday, pressured by a rally in Treasury yields as investors dialed back bets on the scope of the Federal Reserve interest rate cuts this year.
Global money market funds attracted large inflows in the week to Oct. 2 as investor caution ahead of a key U.S. payrolls report and heightened geopolitical tensions in the Middle East boosted demand for safer assets. Investors bought money market funds worth a net $23.21 billion during the week, following a massive $98.19 billion worth of net purchase in the prior week, LSEG Lipper data showed.
Freddie Mac today announced that it has commenced a fixed-price cash tender offer for the purchase of any and all of the STACR? Notes listed in the table below beginning Monday, October 7, 2024. Freddie Mac has engaged Wells Fargo Securities, LLC and StoneX Financial Inc. as lead dealer managers and CastleOak Securities, L.P. as co-dealer manager for the Offer.
This quarter's report highlights the impacts of the Federal Reserve?s rate cutting cycle and market expectations surrounding presidential elections. Lincoln Financial released its latest edition of Market Intel Exchange, curated from the firm?s in-house investment expertise and in partnership with industry-leading asset managers, known as Lincoln?s Multimanager Platform.
Renter Sentiment Also Up, Including Share Expecting Rates to Fall WASHINGTON, Oct. 7, 2024 The Fannie Mae?Home Purchase Sentiment Index? increased 1.8 points in September to 73.9, its highest level in more than two years, as consumers reported survey-high optimism that mortgage rates will decline over the next 12 months.
The benchmark 10-year U.S. Treasury yield rose to 4% for the first time in two months on Monday, as markets bet against another jumbo rate cut from the Federal Reserve after Friday's strong U.S. jobs data pointed to a resilient economy. The 10-year yield was up 3 basis points at 4.008%, having risen as high as 4.014% in London trade.
-J.P.Morgan and BofA Global Research have joined a growing rank of major brokerages that expect the U.S. Federal Reserve to reduce interest rates by 25 basis points in November. BofA and J.P.Morgan have reduced their estimate to 25 bps from 50 bps after the blowout U.S. nonfarm payrolls data on Friday pointed to a resilient economy.
In a recent development, David Roche, a strategist at Quantum Strategy, has raised alarms over the Federal Reserve?s decision to slash interest rates by 50 basis points. What Happened: Roche argues that the rate cut gives a misleading impression of economic weakness, despite strong employment data, CNBC reported on Monday.
A look at the day ahead in U.S. and global markets from Mike Dolan. With any thought of U.S. recession off the agenda after a monster September jobs report, doubts about the extent of further Federal Reserve easing have inevitably re-emerged - and now need a cool inflation report this week to keep in check.
A look at the day ahead in U.S. and global markets from Mike Dolan With any thought of U.S. recession off the agenda after a monster September jobs report, doubts about the extent of further Federal Reserve easing have inevitably re-emerged - and now need a cool inflation report this week to keep in check.
Euro zone government bond yields rose on Monday, adding to a sharp jump at the end of last week following stronger-than-forecast U.S. labour market data that markets think will allow the Federal Reserve to slow its pace of easing.
* US CPI, PPI data due later this week. * Investor's interest in gold remains strong - analyst. * Traders see 95% chance of 25 bps rate cut in Nov. By Rahul Paswan. Gold prices edged up on Monday as an escalation in the Middle East conflict pushed investors to safe haven assets, while traders awaited inflation data this week for further clues on the Federal Reserve's rate cut path.
- U.S. stock indexes fell on Monday, pressured by rising Treasury yields as markets recalibrated expectations for the Federal Reserve rate cuts, while rising conflict in the Middle East kept traders on the sidelines. U.S. Treasury yields rallied as investors reassessed the Fed's rate path, with the yield on benchmark 10-year notes exceeding 4% for the first time in two months.
-Wall Street's three major indexes closed down around 1% on Monday while Treasury yields rose, as traders tamped down bets for Federal Reserve interest-rate easing and worried about the Middle East conflict's impact on oil prices.
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.
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