US Treasuries plummeted on Monday as investors eagerly awaited critical economic data and Federal Reserve Chair Jerome Powell’s remarks, which may influence future interest rate policy decisions. The yields on the five-year US note surged by six basis points to 4.10%, with expectations of a jobs report and Powell’s comments potentially shaping the central bank’s next move.
Investors are looking ahead to this Friday’s crucial jobs report, which could sway the Fed’s policy decision at its next meeting on December 18. Winson Phoon, head of fixed-income research at Maybank Securities, stated that “the market is shifting its focus back to data after a strong Treasury run last week.” This heightened anticipation of data-driven decisions may lead to further interest rate shifts in the coming weeks.
In related news, the dollar strengthened against the French debt spread, jumping 0.6%, while the Bank of Japan’s hawkish comments fueled expectations of potential future rate hikes. The BOJ Governor Kazuo Ueda mentioned that the next rate hike is “nearing,” with economic data indicating a positive trend.
The upcoming Fed calendar includes several key events on December 4 and 6, including Powell’s remarks and several Federal Reserve Governors’ appearances. Investors will closely monitor these developments to gauge the central bank’s stance on interest rates.
Source: https://finance.yahoo.com/news/treasuries-start-week-back-foot-112526444.html