November 18, 2024
United States:
Treasuries See 2024 Gains Dwindle with December Fed Cut at Risk
A two-month slump has all but wiped out the US Treasury market’s gains for the year, as traders brace for Donald Trump’s return and the chance of slower interest-rate cuts from the Federal Reserve.
A Bloomberg index of Treasury returns has seen its 2024 advance shrink to about 0.7% from a peak of 4.6% on Sept. 17, the day before the Fed reduced borrowing costs for the first time since 2020.
Europe:
ECB Quarter-Point December Rate Cut a Done Deal, Stournaras Says
The European Central Bank is almost certain to cut interest rates by a quarter point in December, according to Governing Council member Yannis Stournaras.
Asked if such a move is a done deal, the Greek central bank chief said, “more or less” and that he thinks “25 basis points is an optimal reduction.”
Asia:
Ueda’s Caution Over Hinting at BOJ Hike Timing Weakens Yen
Bank of Japan Governor Kazuo Ueda avoided giving a clear hint that he will raise interest rates at a December meeting during closely watched comments that weakened the yen.
In his last major speech before the BOJ’s Dec. 18-19 meeting, Ueda said the timing of the central bank’s next policy adjustment will depend on the economy and prices, as he reiterated his data-dependent stance and kept his options open over when to next hike rates.
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