- Katılım
- 30 May 2021
- Mesajlar
- 3,272
U.S. service sector activity grew below estimates due to activity losses. The ISM services index, which broke a record with 64 in May, fell to 60.1 in June. The median estimate of economists surveyed by Bloomberg was 63.5. The US 10-year bond yield fell sharply to 1.35%, the lowest level in nearly a month. The bond rally was triggered by softer-than-expected US macroeconomic numbers, which showed slowing economic growth. With the recent decline in interest rates, the longer side of the yield curve continues to flatten. The bond market has moved away from a hawkish Fed pricing, with the most recent 10-year yield slipping to 1.30% levels. The main driver of the movement is the thought that the recovery may be temporary. The broader economic veri will show whether we should look at the event as a cooling inflation expectation or an economic slowdown.
The main focus today will be on the FOMC meeting minutes. Policymakers surprised investors with their hawkish stance at the June meeting, and the minutes could provide details on the impending tapering. The June FOMC was a meeting where the Fed’s thoughts, which led them to predict earlier-than-expected rate hikes on a ‘dot plot’, were examined. Powell acknowledged that inflation may be ‘higher and more persistent’ than expected, but he maintains his baseline scenario that higher inflation rates will not persist over the longer term. While the timeline of the trend that emerged in the last meeting of the Fed indicates that the first rate hike may be in 2023, earlier timing will be determined entirely by the inflation momentum, tapering to begin in early 2022.
Kaynak Tera Yatırım
Hibya Haber Ajansı
The main focus today will be on the FOMC meeting minutes. Policymakers surprised investors with their hawkish stance at the June meeting, and the minutes could provide details on the impending tapering. The June FOMC was a meeting where the Fed’s thoughts, which led them to predict earlier-than-expected rate hikes on a ‘dot plot’, were examined. Powell acknowledged that inflation may be ‘higher and more persistent’ than expected, but he maintains his baseline scenario that higher inflation rates will not persist over the longer term. While the timeline of the trend that emerged in the last meeting of the Fed indicates that the first rate hike may be in 2023, earlier timing will be determined entirely by the inflation momentum, tapering to begin in early 2022.
Kaynak Tera Yatırım
Hibya Haber Ajansı