the Yield on 10-year US Treasury bonds rose on Thursday after the Federal Reserve signaled that there could be fewer interest rate cuts next year.
Yield above 10-year treasury increased more than one basis point to 4,516%, after exceed 4.5% in the previous session – a sign of increased volatility. the 2-year treasury yield fell more than two basis points to 4.331%.
Output and prices move inversely to each other. One basis point is equivalent to 0.01%.
Federal Reserve interest rate cuts fell a quarter of a point on Wednesday, a widely expected third straight decline.
However, Chairman Jerome Powell took a hawkish stance on the outlook for next year, while raising his inflation forecast and pointing out that only two interest rate cuts are possible in the near term, reducing compared to four given in September.
The chances of another rate cut at the Fed’s first policy meeting of the year in January have fallen below 10%, according to federal funds futures trading tracked by the Fed. CME FedWatch tool.
Investors now await fresh information on the labor and housing markets as well as final US gross domestic product (GDP) data for the quarter on Thursday.
