Treasuries displayed a fluctuating pattern throughout Tuesday’s trading session, finishing modestly stronger by the end of the day. Bonds prices were inconsistent in the morning, crossing the unchanged line multiple times. However, they inclined in the afternoon trade causing the benchmark ten-year note yield to reduce by 1.9 basis points to 4.234 percent.Treasuries’ increased performance may have signaled optimism about interest rates’ future following last week’s Federal Reserve’s monetary policy announcement. Despite leaving interest rates untouched as anticipated, officials stuck to their prediction of three rate cuts in this year.Post the Fed’s announcement, possibilities of a 25 basis point rate cut in June have bounced back to 61.0 percent, as per CME Group’s FedWatch Tool.Meanwhile, the U.S. Commerce Department released a report showing a significant rise in new orders for manufactured durable goods in February. The report indicated a 1.4 percent surge in durable goods orders in February, following a revised drop of 6.9 percent in January. Orders for transportation equipment primarily drove this surge with an increase of 3.3 percent, rebounding from an 18.3 percent plunge in January. Excluding these rebounds, durable goods orders grew by 0.5 percent after a 0.3 percent slide in January.However, the Conference Board released a separate report that showed U.S. consumer confidence slightly deteriorating in March, slipping from a revised 104.8 in February to 104.7.Wednesday’s trades may be volatile due to a lack of significant U.S. economic data. Traders are likely to be looking ahead to the release of several crucial reports towards the weekend.The material has been provided by InstaForex Company – www.instaforex.com
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