The 10-year Treasury yield rose to 3%. This represents a new 52-week high and reached its highest level since December 2018 on Monday afternoon, before closing at 2.99%. Meanwhile, Texas oil prices were also down, with crude oil trading above $ 105 a barrel today.
The Fed’s two-day policy meeting is about to begin, with markets expecting the announcement of a half-point rate hike.
The first week of May presents very important commitments,
the US Reserve (Fed) is expected to raise the interest rate by 50 basis points and indicate the timing of when the quantitative squeeze begins, which is always an expected time for markets around the world. The Fed will always be the center of attention on Wednesday, 4 May. The official rate announcement begins at 8:00 PM EST, and the Jerome Powell conference begins at 8:30 PM EST.
As for the upcoming meeting, Allianz Global Investors also expects a 50 basis point hike in interest rates announced by the FOMC and a reduction in the bank balance sheet starting in June.
The Treasury’s public debt issuance program, which is expected to decline early, could contribute. The Treasury may increase its bids to counter any negative impact it will have on the financing needs of an upcoming budget ballot.
However, the good season of fiscal receipts allowed the bank account to be strengthened to over $ 900 billion, which should be enough to cover the current account deficit itself.