September 13, 2024
United States:
Fed to Pursue Three Quarter-Point Cuts This Year, Economists Say
The Federal Reserve is likely to lower interest rates by a quarter-point next week and at each of the two meetings that follow, according to economists surveyed by Bloomberg News.
While investors have largely converged around the likelihood of such a move when officials gather Sept. 17-18, the majority of the 46 economists surveyed see policymakers opting for a more gradual pace of rate reductions than the full percentage point of cuts traders anticipate through the rest of the year.
Europe:
Lagarde Signals ECB Open to October Cut But December More Likely
The European Central Bank is open to considering an interest-rate cut in October if the economy suffers a major setback — though the next comprehensive set of information will only be available at the following meeting, President Christine Lagarde said.
Her remarks, less than a day after the ECB delivered its second quarter-point reduction in the deposit rate since June, offer the clearest signal yet that policymakers are leaning toward waiting until December for their next move.
Asia:
China Bond Yields Sink to Record Low With Intervention in Focus
China’s bond traders defied signs of intervention to push sovereign yields to a record low, setting the stage for a showdown with authorities seeking to tame the blistering debt rally.
The yield on the most actively traded 10-year sovereign notes slid to 2.065%, a level unseen since official records became available in 2002. The move came even as state banks were seen becoming more active in selling long-dated bonds in the secondary market in recent days, a sign the People’s Bank of China may have intervened to cool the rally.
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