Trump to Decide on Iran Response in Next Two Weeks
Fed’s Waller Says Bank Should Consider Cutting Rates
(Updated in New York afternoon time)
June 20 (Reuters) – Us treasury yields fell on Friday as Concerns over the conflict in Iran boosted demand for safe haven bonds and after federal resereve Governor Christopher Waller Said The Us Center Should Consider Cutting Rates at Its Next Meeting.
Demand for Treasuries ebbed earlier in the session on optimism that us would find a diplomatic solution to the israel -ran conflict. The White House Said on Thursday that President Donald Trump will decide on Potential us involvement in the next two weeks.
But that Sentiment Soon faded and Markets Turned More Risk Averse. Iran said on Friday it would not discuss
Us markets are catching up after being on Thursday for the federal junetenth holiday.
Fed Funds Futures Traders, Meanwhile, Raised Bets That The Us Central Bank will cut rates by 50 Basis points this year following comments by waller. They are not pricing in 51 Basis points of cuts by December, up from 46 Basis points earlier on Friday.
Waller said that an immignant rate cut was merged given recent tame inflation data and the fact that any price shock from important tarifs will be
“There has been a marginal upward shift in fed rate cuts Following Governor’s dovish comments and some further weKening in data,” said analysts at action economics.
A measure of future us economic activity fell in may for the
And triggered a recession signal, help down by consumer pessimism, weak new orders for manufactured goods, an uptick in job in job benefits claims and a DRP in Building Permit Applications.
The Fed Held Interest Rates Steady and PolicyMakers Signaled Borrowing Costs are Still Likely to Fall in 2025 on Wedns. But fed chair jerome power caubles against putting too much weight on that view, and said he experts “meaningful” inflation ahead as consucers pay more for goes due to the traump administering ‘ Import Tarifs.
The yield on Benchmark US 10-Year Notes was Last Down 2 Basis Points at 4.375%. The Interest-Rate-Sensitive 2-Year Note Yield Fell 3.5 Basis Points to 3.906%.
The yield curve between 2-Year and 10-Year Notes Steeping By Around 2 Basis Points to 47 Basis Points.
The Treasury Department will sell $ 183 billion in short- and intermediate-dated coupon-bearing debt next week, Including $ 69 billion in two-yar notes on tuesday, $ 70 billion in five billion in five billion in the notes Wednsday and $ 44 Billion in Seven-Year Notes on Thursday.
(Reporting by Karen Brettelll Editing by Rod Nickel and Marguerita Choy)
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