June 13, 2024
United States:
Treasuries Gain as Mounting Data Point to Softer Inflation, Jobs
Treasuries rallied, sending the two-year note’s yield to the lowest level since early April, as data on wholesale prices and jobless claims supported wagers the Federal Reserve will wind up cutting interest rates more than policymakers anticipate.
Yields across the maturity spectrum declined, with shorter maturities that are more sensitive to Fed interest-rate changes lower by as much as 7 basis points. The two-year note’s yield fell as much as 9 basis points to 4.66%. Long-maturity yields declined less, hampered in part by anticipation of an auction of 30-year Treasury bonds later Thursday.
Europe:
ECB Case for Rate Caution Mounts After Fed Pares Back Easing Plans
European Central Bank officials just got another reason to hesitate over any further interest-rate cuts after the US Federal Reserve pared back its own plans for easing.
With the so-called dot plots of officials in Washington now indicating only one reduction in 2024 instead of three previously, their peers in Frankfurt know that any further action on their part risks importing inflation via a potentially weaker currency.
Asia:
BOJ to Weigh Bond Buying as Investors Seek Hints for July Hike
The Bank of Japan is widely expected to consider reducing its bond purchases at this week’s policy meeting, with investors also alert for any signals on the prospects for an interest rate hike next month.
Governor Kazuo Ueda’s policy board will hold its benchmark rate in a range between 0 and 0.1% at the Friday conclusion of its two-day gathering, according to all but one economist surveyed by Bloomberg.
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