Treasury bonds, weekends are rising, on signs of economic cooling

(Bloomberg) – The treasury rose on Friday and was on its way to achieving a small weekly gain after the survey data showed signs of American economic cooling.

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The revenues were at least two points less, with a short entitlement decreased by nearly four basis points. Its lowest levels were reached in the session after an unexpected decrease in the S& P Global Service scale and a descending review of the Michigan University of feelings, both for the month of January. Rally Left Treasury left a slightly decrease a week, which started installing Donald Trump to a second consecutive presidential term.

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The data reinforces the opinion that the Federal Reserve-which meets from January 28 to 29-will decrease interest rates at least once this year early in June, after discounts at each of its last three meetings. The bonds also benefited from the lack of immediate action by Trump to impose a tariff on imports, although he said he intends to.

“Through the data -based federal reserve, the market focuses on every economic version,” said Christian Hoffman, a wallet manager at Thornburg Investment Management. At the same time, “Politics will remain a major driver of volatility and uncertainty.”

Bloomberg’s financial and economic markets are unanimous in expecting that Federal Reserve Chairman Jerome Powell and his colleagues on the target scale will maintain 4.25 % -4.5 % for the interest rate in the United States next week. If we look forward, the barter is now preferring a quarter of points cuts by the end of the year. A week ago, he was just expected.

The bonds began to sell in September, which prompted 10 -year revenue to the highest level in 14 months of 4.8 % earlier this month, reflecting fears that commercial protectionism can lead to inflation. The benign inflation data for the month of December, which was released on January 15 and feeds the suspension of Governor Christopher Waller the next day that the mid -year reduction rate remains possible from bleeding.

The short -term revenues of the Ministry of Treasury have moved more sensitive than that long -term to assess changes by the Federal Reserve, more than others this week. The 10 -year return is 36 basis points higher than two years, compared to 34 basis points a week ago. Data open interests for the future of the Treasury indicate that investors expect more slope to the curve.

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