The US bond market is facing a critical two weeks ahead after experiencing its worst selloff in six months. This period will likely determine its trajectory for the remainder of the year. Investors are closely watching for key economic indicators and Federal Reserve signals that could influence interest rates and market stability.
In a week, Federal Reserve officials will meet to discuss the pace of interest rate cuts. Ahead of that, three key economic reports will highlight the US economy's underlying strength, despite a temporary slowdown in job growth.
The corporate bond market is showing remarkable stability and liquidity. In September, the US market had its busiest trading month on record, highlighting strong investor activity.
The European Central Bank needs to be flexible with interest rates, according to Governing Council member Klaas Knot. He emphasized the importance of adapting to changing economic conditions to maintain stability in the eurozone.
On "Bloomberg The Close," Chuck Lieberman, co-founder and CIO of Advisors Capital Management, stated that he does not foresee the Federal Reserve pushing rates significantly lower, citing the strength of the labor market as a key factor.
In a recent discussion on "Bloomberg Real Yield," Richard Bernstein Advisors' Michael Contopoulos and Bloomberg's Ira Jersey analyzed how a potential election win by either Kamala Harris or Donald Trump could impact the 10-year yield. They highlighted that significant policy differences between the two candidates could lead to varied market reactions, especially in the bond market. Contopoulos noted that investor sentiment and expectations around fiscal policy will play a crucial role, while Jersey emphasized the importance of monitoring economic indicators in the lead-up to the election.
European Central Bank President Christine Lagarde has urged policymakers to start discussions earlier on weeks when interest rate decisions are scheduled. This move aims to streamline the decision-making process, according to sources familiar with her plans.
The Federal Reserve, the central banking system of the United States, has a significant role in maintaining the country’s economic stability. One of the most critical functions of the Federal Reserve is to influence the federal funds rate (FFR), the interest rate at which banks lend to each other overnight. By setting the FFR, the ...
