Taking a look at the market action this Wednesday morning. There's quite a lot of positivity, but Treasury yields are moving lower across the curve as trading resumes with private sector jobs data signaling a cooling US jobs market.
Yvonne Man
Paul Dobson
In absence of more official data, the market suggests the US economy is cooling and the Fed will need to cut interest rates again, possibly in December, which supports the leg lower in bond yields.
That private sector jobs data is boosting bets on a Fed rate cut, affecting Treasury yields.
Yvonne Man
Paul Dobson
Yes, the market is pricing in about 75 basis points worth of rate cuts over the next year, taking the Fed rate down to about 3%, sustaining a healthy market rotation away from tech into other sectors.