Treasury yields fall as investors weigh interest rate outlook

Yields and prices have an inverted relationship. One basis point equals 0.01%.Investors weighed the outlook for interest rates following remarks from Fed officials and the latest inflation data., published Thursday, came in slightly higher than forecast at 0.4% on a monthly basis and 3.7% on an annual basis. Economists previously surveyed by Dow Jones were expecting increases of 0.3% and 3.6% respectively., which reflects price changes at the wholesale level, had also come in above expectations.

This comes as uncertainty about the Fed's monetary policy plans has grown in recent weeks as policymakers appear to have differing views on whether interest rates need to be hiked higher still. Recent spikes in Treasury yields prompted various officials to suggest that rates have been raised sufficiently to ease the economy and cool inflation, however others have been more cautious and noted that this will depend on how inflation develops.

Two central bank meetings remain this year, the first on Oct. 31 and Nov. 1 and the second in December. Markets are currently pricing in only a small chance of a rate hike in November. On Friday, investors will be watching September's import and export price figures, as well as the preliminary October consumer sentiment report from the University of Michigan.

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal Reserve minutes: Officials signal cautious approach to rates amid heightened uncertaintyFederal Reserve officials regarded the U.S. economy’s outlook as particularly uncertain last month, according to minutes released Wednesday, and said they would “proceed carefully” in deciding whether to further raise their benchmark interest rate.
Source: wjxt4 - 🏆 246. / 63 Read more »

Federal Reserve minutes: Officials signal cautious approach to rates amid heightened uncertaintyFederal Reserve officials regarded the U.S. economy’s outlook as particularly uncertain last month, according to minutes released Wednesday, and said they would “proceed carefully” in deciding whether to further raise their benchmark interest rate.
Source: ksatnews - 🏆 442. / 53 Read more »

Federal Reserve minutes: Officials signal cautious approach to rates amid heightened uncertaintyFederal Reserve officials regarded the U.S. economy’s outlook as particularly uncertain last month, according to minutes released Wednesday, and said they would “proceed carefully” in deciding whether to further raise their benchmark interest rate. Such cautious comments are generally seen as evidence that the Fed isn’t inclined to raise rates in the near future. Economic data from the past several months “generally suggested that inflation was slowing,” the minutes of the Sept. 19-20 meeting sa
Source: AP - 🏆 728. / 51 Read more »