Ipek Ozkardeskaya
Swissquote Bank Ltd
The Federal Reserve (Fed) maintained its interest rates unchanged at this week’s meeting, but improved its growth outlook and left the door open for more tightening. The Bank of England (BoE) is expected to maintain the status quo, as well.
The latest Fed decision was unsurprisingly hawkish and did not impact appetite in US bonds which got a boost from the Treasury’s announcement of a slightly lower-than-expected quarterly refunding auction size for the 3, 10 and 30-year maturity bonds next week. Cherry on top, the US Treasury said that they now expect one more step up in quarterly issuances for the long-term debt, whereas the expectation was multiple more step ups.
The US 10-year yield sank to 4.70% after the Fed decision and Treasury’s much-awaited issuance calendar reveal, the 30-year yield fell to 4.90%. Stocks rallied. AMD and Qualcomm gained after results, Apple is due to reveal its Q3 earnings after the bell.
Elsewhere, gold eased and oil rebounded from a psychological support.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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